Home Energy Management System for Demand-Based Tariff Towards Smart Applicances in Smart Grids

The peak demand placed on an electricity network can be reduced using a demand-based tariff, in which part of a customer's electricity bill is dependent on their maximum demand reached over a period of time. This paper reviews the state of the associated technologies, and it offers a smart grid hardware and software solution to achieve a home energy management system to assist electricity users to reduce their maximum demand. The method uses the application of the standards for demand response capabilities of electrical products, in combination with plug-in switching modules placed between any mains-powered appliance and the power point. The software system uses a heuristic algorithm that takes actions to achieve the target limit while causing the least inconvenience possible to the user. A prototype system has been developed and demonstrated using a simulated data that the maximum demand in a simulated household can be reduced significantly.