Developing incentive demand response with commercial energy management system (CEMS) based on diffusion model, smart meters and new communication protocol

Abstract An incentive demand response program with two tools is proposed in this paper to help the customers to participate in the program. The first tool is the use of advanced metering infrastructure ( AMI ) with two-way communication system that carries significant implications for customer service, privacy and consumer protection policies. The proposed demand response program with AMI , based on real time signals, can be an effective method for utilities to manage system peaks by controlling customer loads with renewable sources. Widespread use of program with AMI will be supported by reliable and flexible ECHONET Lite Specification ( ELS ) communication protocol, as the second tool, that would encourage consumers to participate and reduce their energy use at peak times. ECHONET Lite, next-generation industrial and household level protocol system, is designed to integrate many devices and systems. Developing commercial energy management system ( C E M S ) based on advanced smart metering and ECHONET Lite protocol can help in getting the balance between the load and resources at the customers’ premises. C E M S can manage appliances and renewable resource devices at the consumers’ premises with the premise that the consumers should manage the power consumption by themselves to balance and also reduce the energy costs. The developed management system is based on a diffusion model for load balancing. The automated model of gaseous diffusion is applied as new load balancing model between the load and sources. The model helps getting an automatic balancing between the demand and resources at the customers’ premises. The proposed demand-response with real-time pricing and hourly pricing offers consumers choice and transparency, and promotes efficiency. The provided scheme provides tools that can assist the customers’ premises to participate in demand response programs.