An Effective Algorithm for Demand Side Management in Smart Grid for Residential Load

Implementation of demand side management (DSM) ensures a dynamic energy management for residential domain by permitting consumers to initiate early informed decisions concerning their energy utilization, which facilitates the utility providers to scale down the peak load demand and remodel the load curve, rather than constructing new generation and transmission units. Consequently, a better sustainability and decrement of net operational cost along with carbon emission level is achieved. DSM can be expanded by applying various optimization methods to handle large scale appliances of disparate power ratings. In this paper, for a residential community a unique DSM algorithm is proposed, where the Peak to Average Ratio (PAR) reduction is the foremost focus, which will eventually escalate the efficiency of Smart Grid and also reduce the cost of electricity consumption. Regarding this, a framework of DSM is suggested utilizing load shifting and peak clipping techniques, which is mathematically formulated and optimized by implementing the proposed algorithm in MATLAB. From this methodology, utility providers and consumers could reach to a mutually beneficial agreement; moreover, achieve significant savings and reduction in peak period requirement.