Real-time demand response for energy management in smart grid

Abstract

Electricity demand has been growing continuously as the industrialization process develops rapidly. The procurement of additional infrastructures is boosted to meet consumer rising demand. Adoption of an energy management system (EMS) will help electricity producer to optimize electricity generation and consumer to use energy more efficiently. Smart Grid system incorporates intelligence information and communication technology (ICT), a smart meter that will enable two-way communications between utility company and energy consumer.

The demand response scheme has been incorporated in Smart Grid as one of the key characteristics. Consumers manage their demand accordingly to the dynamic pricing over time which could help to improve grid system reliability, efficiency and economics. This report will introduce a distributed real-time algorithm to compute the optimal solution of the primal problem by decoupling it into smaller subproblems. As the computation will be done in a parallel manner, private information of users is not compromised. The scope of the report is also to take into consideration energy storage system in order to minimize peak-to-average ratio (PAR) and both temporal-spatial constraints.