Two-Steps Procedure in Demand Side Management for Reducing Energy Costs

This paper presents two-steps procedure which can be used in demand side management for reducing energy costs. In the first step of the procedure, values of the maximum and minimum power demands are determined by minimization of the differences between power demands per hour in a daily schedule. In this step is possible to change the time intervals of using a few deferrable loads. In the second step, these values are taken as constraints and the energy costs function is minimized based on the buying prices per hour, thus resulting in the optimized time intervals for using deferrable loads. The optimization is done in program Lingo.