Multi-objective Optimization based Automated Demand Response Model in Smart Distribution Grid

Abstract

Automated Demand Response (ADR) plays a vital role in the smart grid. This paper uses a two-layer hierarchical day ahead model where the utility and consumer are the key stakeholders. The Utility being at the top layer initiate an ADR event during peak load conditions. It sends a signal for managing the load to the consumers, equipped with smart meter and load control device technologies at their end. The main objective of the utility is to minimize electricity generation costs and give a particular part of the saving to the consumer for reducing their electricity consumption in the form of incentive. The customer wishes to maximize its benefit, while taking into consideration the dissatisfaction factor. A multi-objective problem is formulated to achieve a fair solution, and a pareto optimal set is achieved using the epsilon constraint method in GAMS. Also, the time-frame of activities involved between utility and consumer to carry out an ADR event is discussed in this paper. Simulation results over different consumer categories, i.e., industrial/ commercial, shows the feasibility of the model.