Demand Response Benefits for Load Management Through Heuristic Algorithm in Smart Grid

In this paper, we adopt a model that concentrate on problem of load scheduling under utility through demand response programs. Therefore, demand response model used in this paper is based on real time electricity price; that changes over the course of time which may reflect the generation cost of utility as well as wholesale electricity price in day-ahead market. However, using real time price creates peak in the system due to operating the maximum load on low price hours, that may destroy the electrical system because of high peak to average ratio. Therefore, single pricing system is inefficient regarding residential load scheduling perspective that is why we use the combination of RTP+inclining block rate. The working of proposed mechanism is based on genetic algorithm. Simulation results show that our proposed scheduling algorithm effectively reduces electricity cost and PAR.