Multi-objective cost-load optimization for demand side management of a residential area in smart grids

Abstract Demand side management (DSM) is one of the most interesting areas in smart grids, and presents households with numerous opportunities to lower their electricity bills. There are many recent works on DSM and smart homes discussing how to keep control on electricity consumption. However, systems that consider minimization of peak load and cost simultaneously for a residential area with multiple households have not received sufficient attention. This study, therefore, proposes an intelligent energy management framework that can be used to minimize both electrical peak load and electricity cost. Constraints, including daily energy requirements and consumer preferences are considered in the framework and the proposed model is a multi-objective mixed integer linear programming (MOMILP). Simulation results for different scenarios with different objectives verified the effectiveness of the proposed model in significantly reducing the electricity cost and the electrical peak load.

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