Reducing Generation Cost by Optimum Load Scheduling in Smart Grid Considering System Loss

Reducing electricity generation cost, and peak demand, are two key requirements for smart grid. Load scheduling is an effective way to reduce the peak demand for reducing generation cost. In this paper, the problem of scheduling the loads of a substation is analyzed considering system losses - which is modeled including transmission loss and transformer loss - to minimize the electricity generation cost. An optimization algorithm is then formulated to determine the optimal schedule of the loads within 24 hours of a day. The problem is solved for various load scenarios by using optimization tools including MINOS, FilMINT, and CPLEX. The numerical results show that optimal load scheduling reduces the average generation cost by more than 34% compared to that of a conventional system. However, this reduction decreases with increasing number of load. System loss also has a significant impact on the reduction of generation cost by optimal load scheduling.