Power consumption management and control for peak load reduction in Smart Grids using UPFC

Smart Grid is a new term dealing with intelligent, auto-balancing and self-monitoring power grids with minimal human intervention. Implementing this technology brings about reliability, high efficiency and economic benefits for the network. Moreover, through the control and management of power consumption, consumers will enjoy the benefits of cost reduction during the expensive peak time. This paper proposes a management model for optimized consumption reduction which decreases losses, generation costs and overload in transmission lines during the peak time. Although the peak generation cost is reduced, the cost of costumer's changes must be paid too, hence these changes are applied in such a way that the benefits for both parties will be maximal. By finding the best buses for power reduction and also the amount of the reduction, the maximum efficiency is reached with least changes. So, the Smart Grid will be able to compensate the costs of the customer's changes by adjusting tariffs or other economic plans.