A Demand-Side Response Smart Grid Scheme to Mitigate Electrical Peak Demands and Access Renewable Energy Sources

Growing demands are causing increased pressure on the electricity infrastructure and perpetually escalated energy prices. Typically, there are daily and seasonal demand fluctuations oscillating between excessive-peak and equally excessive-low demands. Peak demands, at times, are causing congestions on the transmission and distribution network associated with compromised quality, risk of outages and high-priced energy supply. Expensive-to-run power plants are usually operated for short periods of time to meet peak demands what makes their operation even more expensive. Low-demands, usually supplied by base-load power stations, could be driving the electrical capacity and network to be operated well below a sustainable economic feasibility. Spreading out the demand profile on a moderated level would achieve an improved utilization of the electrical infrastructure. This research presents a demand-side response scheme to be implemented at end-user's premises contributing shifting loads to the right time of the day targeting spreading out the demand profile and allowing utilization of renewable energy sources. The technology uses programmable internet relays controlling appliance switches to operate loads automatically. The paper presents simulations of the economic model corresponding to the above described scheme representing an incentive-based demand response. In the simulation the impact of these programs on load shape and peak load magnitudes, financial benefit to users as well as reduction of energy consumption are shown. The results demonstrated more moderated load profile at lesser peak load magnitude and reduced energy cost.