On the convexity of Chernoff bound in the context of consumption admission control in smart grids

In this paper we prove the convexity of the Chernoff bound in the context of estimating the overconsumption in a bottom-up consumption modelling framework in smart grid. We also introduce three application areas for the Chernoff bound in the context of power systems, more specifically the reliability assessment, consumption admission control and capacity sizing. The proof of convexity shows the method to be a computationally feasible tool for these three application areas.