Distributed Demand‐Side Management

Demand management and response are being recognized as important drivers for active user participation in the energy market. This chapter proposes a distributed load management (LM) solution to reduce the peak load in smart grids. The LM problem is formulated as an optimization problem that aims to maximize the total utility of all energy users. First, the chapter illustrates how the LM problems formulate under the proposed LM system. It then proposes a distributed dynamic programming algorithm to solve the LM problem. The chapter presents case studies based on simulation. It focuses on controlling of plug‐in electric vehicles (PEVs) that are connected to a gird to minimize the energy loss of the system. To this end, the charging rates of PEVs are controlled in an optimized way. The optimal control solution is based on a consensus algorithm, which aligns each PEV's interest with the system's benefit.