Proactive Demand Participation of Smart Buildings in Smart Grid

Abstract

Buildings account for nearly 40 percent of the total energy consumption in the United States. As a critical step toward smart cities, it is essential to intelligently manage and coordinate the building operations to improve the efficiency and reliability of overall energy system. With the advent of smart meters and two-way communication systems, various energy consumptions from smart buildings can now be coordinated across the smart grid together with other energy loads and power plants. In this paper, we propose a comprehensive framework to integrate the operations of smart buildings into the energy scheduling of bulk power system through proactive building demand participation . This new scheme enables buildings to proactively express and communicate their energy consumption preferences to smart grid operators rather than passively receive and react to market signals and instructions such as time varying electricity prices. The proposed scheme is implemented in a simulation environment. The experiment results show that the proactive demand response scheme can achieve up to 10 percent system generation cost reduction and 20 percent building operation cost reduction compared with passive demand response scheme. The results also demonstrate that the system cost savings increase significantly with more flexible load installed and higher percentage of proactive customers participation level in the power network.