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Quadratic Programming for Demand-Side Management in the Smart Grid

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Abstract

Demand-Side Management (DSM) is an effective means to optimize resource utilization in the electricity grid. It makes the electricity consumption pattern of users more even, reducing the Peak-to-Average demand Ratio (PAR) in the power system. The utility company can monitor and shape the hourly electricity consumption of the users by adopting an appropriate pricing strategy and advertising it online exploiting the underlying Smart Grid infrastructure. On the other hand, the users can monitor the hourly price of electricity in the market and based on the price variation, they can schedule their appliances to minimize their electricity payment, without compromising their daily need. In this paper, we consider a DSM problem where the company adopts a quadratic pricing strategy to encourage the users to have a flat consumption pattern. We formulate the problem incorporating Quadratic Programming (QP). The simulation results show that the QP approach reduces the PAR drastically.

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Acknowledgment

The research leading to these results has received funding from the FEDER through Programa Operacional Factores de Competitividade COMPETE - Fundacão para a Ciência e a Tecnologia and the ENIACs JU and ARTEMIS through projects E2SG (ENIAC/0002/2011 Grant Agreement no 296131) and ACCUS (ARTEMIS/0005/2012, Grant Agreement no 333020). Firooz Bashashi Saghezchi would also like to acknowledge his PhD grant funded by the Fundacão para a Ciência e a Tecnologia (FCT-Portugal) with reference number SFRH/BD/79909/2011.

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Correspondence to Firooz B. Saghezchi .

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© 2015 Institute for Computer Sciences, Social Informatics and Telecommunications Engineering

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Saghezchi, F.B., Saghezchi, F.B., Nascimento, A., Rodriguez, J. (2015). Quadratic Programming for Demand-Side Management in the Smart Grid. In: Mumtaz, S., Rodriguez, J., Katz, M., Wang, C., Nascimento, A. (eds) Wireless Internet. WICON 2014. Lecture Notes of the Institute for Computer Sciences, Social Informatics and Telecommunications Engineering, vol 146. Springer, Cham. https://doi.org/10.1007/978-3-319-18802-7_14

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  • DOI: https://doi.org/10.1007/978-3-319-18802-7_14

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-18801-0

  • Online ISBN: 978-3-319-18802-7

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