A load management optimization approach considering economic efficiency and load profile

Demand side management (DSM) is the planning, implementation and monitoring of those utility activities designed to influence customers' use of electricity in ways that will produce desired changes in the utility's load profile, especially for reducing the peak load. As a significant part of DSM, load management changes load profile by load shifting, load clipping, load translation and other methods. In the existing load management approaches, most of them simply focus on maximizing economic benefit or loading rate. To improve load management efficiency, this paper proposes a novel optimization approach, considering both economic efficiency and load shape, based on economy theory. Besides, several conversion methods are presented to turn the proposed mixed integer nonlinear programming model into nonlinear programming one in order to simplify the solving process. The simulation study shows that the proposed approach has the merits in economical efficiency and load profile improvement over the conventional method.