Demand side management proposed algorithm for cost and peak load optimization

The electrical energy cannot be stored in large scale because we have no resource to store it in bulk. It has to be produced, transmitted, distributed and used instantly. However the nature of the load is variable with respect to time. The power generating plants are designed for maximum demand. It means the gap between peak load and the average load is high which results in greater per unit cost. The peak load increases suddenly in peak hours so we need to install large power generating plants to meet peak demand. It is not possible for developing countries to install such large power generating units due to limited financial resources. The proposed solution of this problem is Demand Side Management (DSM) technique. In Demand Side Management (DSM) technique the load is shifted to off peak hours which results in financial benefit to residential customers. DSM is an important part of Smart Grid (SG) which is used to shift load to off peak timings as well as reshape load curve. As a result, importance of SG increases and there is a decrease in per unit energy cost. However this research thesis revolves around DSM load shifting techniques for only flexible devices. The flexible devices should be shifted to off peak period. “The Day Ahead Shifting” technique is proposed in this research thesis to minimize the above said problem significantly. Mathematical modelling and simulation in this research thesis are based on residential load during the spring season in Pakistan. This algorithm is developed in Matlab software. The findings of this thesis suggest that DSM approach attains significant energy savings and objective curve.