Abstract
Demand side management (DSM) plays an important role in smart grid for paving the way to a low-carbon future. In this paper, a hierarchical day-ahead DSM model is proposed, where renewable energy sources are integrated. The proposed model consists of three layers: the utility in the upper layer, the demand response (DR) aggregator in the middle layer, and customers in the lower layer. The utility seeks to minimize the operation cost and give part of the revenue to the DR aggregator as a bonus. The DR aggregator acts as an intermediary, receiving bonus from the utility and giving compensation to customers for modifying their energy usage pattern. The aim of the DR aggregator is to maximize its net benefit. Customers desire to maximize the social welfare, i.e., the received compensation minus the dissatisfactory level. To achieve these objectives, a multiobjective problem is formulated. An artificial immune algorithm is used to solve this problem, leading to a Pareto optimal set. Using a selection criterion, a Pareto optimal solution can be selected, which does not favour any particular participant to ensure the overall fairness. Simulation results confirm the feasibility of the proposed method: The utility can reduce the operation cost and the peak to average ratio; the DR aggregator can make a profit for providing DSM services; and customers can reduce their bill.
Highlights
R Enewable energy sources (RESs) are playing an increasing role in power generation
This paper has proposed a multiobjective optimization approach for enabling demand side management (DSM)
A hierarchical framework has been studied, which consists of the utility, the demand response (DR) aggregator, and customers
Summary
In the UK, the percentage of energy derived from RESs rose from 6.7% in 2009 to 24.6% in 2015 [1]. These RESs cause intermittent problems due to their inherent characteristics, which makes it difficult to schedule and manage conventional generation facilities for compensating them. Smart grid can offer a two-way flow of information and a two-way flow of electricity. It includes several parts: smart power generation systems, smart substations, smart power distribution networks, smart interactive terminals, smart scheduling, smart building electricity, smart city power grids, smart meters, smart appliances, and new types of energy storage system [2], [3]. One of the key smart grid technologies is demand side management (DSM) [4]
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