Efficient Energy Management Techniques in Emerging Smart Grid Environment

Smart grid (SG) is a power grid system that aims to provide electricity from generation points to the consumers in a smart and controlled way. The transformation from traditional power grid into economical and reliably operated SG is contributed by demand side management (DSM). It has become one of the most vital areas of research for energy optimization in future SG. The DSM ensures the efficient utilization of electrical energy by altering the load profile with an active participation of consumers and contributes towards reducing peak demands so that system reliability increases. The participating users in DSM shift their loads to the low pricing hours. However, this results in the problem of rebound peak. This research work focuses on finding the efficient solution to minimize the overall cost of the consumed electricity while guaranteeing a low rebound peak. The optimization problem is formed in order to decrease the electric cost subjected to numerous constraints. By the use of convex optimization theory, two algorithms are proposed to efficiently solve the formulated problem. A novel concept of virtual price is presented to deal with the problem of rebound peak. Simulations results are presented to validate the benefits of proposed schemes. Results show a significant improvement in performance in terms of rebound peak and the cost reduction.