Day-ahead Optimal Scheduling for Demand Side Management in Smart Grids

This paper proposes a new method for day-ahead energy scheduling in smart grids. The proposed energy scheduling method optimizes the operation of several elements such as battery storage, shiftable loads, and adjustable loads. The aim of the scheduling problem is to minimize the overall operating cost for the day ahead. The cost minimization is realized by shifting the load requirements to optimal time periods and controlling the charging/discharging of battery storage systems during optimal time periods. The scheduling problem is formulated as a mixed-integer nonlinear programming. Computer simulations are performed on a typical distribution system. The results show that the proposed day-ahead scheduling scheme can significantly reduce the overall system operating costs via demand side management under the smart grid paradigm.