A Novel Time of Use Tariff Scheme Using Artificial Hummingbird Algorithm for Demand Side Management of a Residential City in Bangladesh

The escalating demand for electricity among residential inhabitants, driven by urbanization and increasing automation, necessitates innovative solutions like Demand Side Management (DSM) to reduce the peak demand of electricity, abate costs, and minimize environmental consequences. This paper introduces a novel Time of Use (ToU) pricing scheme optimized using the Artificial Hummingbird Algorithm (AHA). This scheme strategically balances peak and off-peak tariff rates, ensuring financial benefits for both consumers and utility providers across all income groups. The proposed scheme, implemented in Dhaka City, Bangladesh, utilizes two types of meters (meter-a and meter-b) allocated to consumers of different income levels. optimization results demonstrate that the ToU scheme effectively eliminates the financial burden for low-income consumers. Middle and high-income groups can reduce their energy costs by shifting consumption away from peak hours. The proposed scheme outperforms the existing tariff structures and non-optimized ToU approaches, showcasing substantial electricity bill savings. The consumer can save up to 5% to 15% of their existing bill by implementing this ToU approach, whereas the utility will make a profit if peak-hour consumption rises.