D2S: Dynamic Demand Scheduling in Smart Grid Using Optimal Portfolio Selection Strategy

In this paper, we propose a dynamic demand scheduling (D2S) scheme-an effort toward cost-effective energy consumption at customers' end. The theory of optimal portfolio selection is adopted to generate customers' expected day-ahead energy demand graph called the weight graph, based on past days' history-energy demand, profit return, and corresponding risk. In such a scenario, the weight graph of energy ensures that the expected profit return and the corresponding risk to the customers are optimized. Consequently, we evaluate the dynamic scheduling scheme for optimizing the energy cost to the customers using the weight graph. Furthermore, the proposed scheme also assists in relieving the peak-demand on the grid, which, in turn, implies that the grid is capable of providing service to the scheduled appliances. The performance of the proposed scheme is evaluated with different performance metrics-peak-demand, demand variation, energy-cost, and utility of the customers. Simulation results show that the proposed dynamic scheduling scheme, D2S, yields improved performance than that with the existing ones-no scheduling and static scheduling. It also shows that the utility of the customers increases approximately 28.2% over the existing ones.