Most of the existing demand-side management programs focus primarily on the interactions between a utility company and its customers/users. In this paper, we present an autonomous and distributed demand-side energy management system among users that takes advantage of a two-way digital communication infrastructure which is envisioned in the future smart grid. We use game theory and formulate an energy consumption scheduling game, where the players are the users and their strategies are the daily schedules of their household appliances and loads. It is assumed that the utility company can adopt adequate pricing tariffs that differentiate the energy usage in time and level. We show that for a common scenario, with a single utility company serving multiple customers, the global optimal performance in terms of minimizing the energy costs is achieved at the Nash equilibrium of the formulated energy consumption scheduling game. The proposed distributed demand-side energy management strategy requires each user to simply apply its best response strategy to the current total load and tariffs in the power distribution system. The users can maintain privacy and do not need to reveal the details on their energy consumption schedules to other users. We also show that users will have the incentives to participate in the energy consumption scheduling game and subscribing to such services. Simulation results confirm that the proposed approach can reduce the peak-to-average ratio of the total energy demand, the total energy costs, as well as each user's individual daily electricity charges.

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Autonomous Demand-Side Management Based on Game-Theoretic Energy Consumption Scheduling for the Future Smart Grid

The increasing interest in integrating intermittent renewable energy sources into microgrids presents major challenges from the viewpoints of reliable operation and control. In this paper, the major issues and challenges in microgrid control are discussed, and a review of state-of-the-art control strategies and trends is presented; a general overview of the main control principles (e.g., droop control, model predictive control, multi-agent systems) is also included. The paper classifies microgrid control strategies into three levels: primary, secondary, and tertiary, where primary and secondary levels are associated with the operation of the microgrid itself, and tertiary level pertains to the coordinated operation of the microgrid and the host grid. Each control level is discussed in detail in view of the relevant existing technical literature.

Trends in Microgrid Control

The smart grid is conceived of as an electric grid that can deliver electricity in a controlled, smart way from points of generation to active consumers. Demand response (DR), by promoting the interaction and responsiveness of the customers, may offer a broad range of potential benefits on system operation and expansion and on market efficiency. Moreover, by improving the reliability of the power system and, in the long term, lowering peak demand, DR reduces overall plant and capital cost investments and postpones the need for network upgrades. In this paper a survey of DR potentials and benefits in smart grids is presented. Innovative enabling technologies and systems, such as smart meters, energy controllers, communication systems, decisive to facilitate the coordination of efficiency and DR in a smart grid, are described and discussed with reference to real industrial case studies and research projects.

Demand response and smart grids—A survey

This paper discusses conceptual frameworks for actively involving highly distributed loads in power system control actions. The context for load control is established by providing an overview of system control objectives, including economic dispatch, automatic generation control, and spinning reserve. The paper then reviews existing initiatives that seek to develop load control programs for the provision of power system services. We then discuss some of the challenges to achieving a load control scheme that balances device-level objectives with power system-level objectives. One of the central premises of the paper is that, in order to achieve full responsiveness, direct load control (as opposed to price response) is required to enable fast time scale, predictable control opportunities, especially for the provision of ancillary services such as regulation and contingency reserves. Centralized, hierarchical, and distributed control architectures are discussed along with benefits and disadvantages, especially in relation to integration with the legacy power system control architecture. Implications for the supporting communications infrastructure are also considered. Fully responsive load control is illustrated in the context of thermostatically controlled loads and plug-in electric vehicles.

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Achieving Controllability of Electric Loads

In this paper, we consider a smart power infrastructure, where several subscribers share a common energy source. Each subscriber is equipped with an energy consumption controller (ECC) unit as part of its smart meter. Each smart meter is connected to not only the power grid but also a communication infrastructure such as a local area network. This allows two-way communication among smart meters. Considering the importance of energy pricing as an essential tool to develop efficient demand side management strategies, we propose a novel real-time pricing algorithm for the future smart grid. We focus on the interactions between the smart meters and the energy provider through the exchange of control messages which contain subscribers' energy consumption and the real-time price information. First, we analytically model the subscribers' preferences and their energy consumption patterns in form of carefully selected utility functions based on concepts from microeconomics. Second, we propose a distributed algorithm which automatically manages the interactions among the ECC units at the smart meters and the energy provider. The algorithm finds the optimal energy consumption levels for each subscriber to maximize the aggregate utility of all subscribers in the system in a fair and efficient fashion. Finally, we show that the energy provider can encourage some desirable consumption patterns among the subscribers by means of the proposed real-time pricing interactions. Simulation results confirm that the proposed distributed algorithm can potentially benefit both subscribers and the energy provider.

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Optimal Real-Time Pricing Algorithm Based on Utility Maximization for Smart Grid

In the framework of liberalized electricity markets, distributed generation and controllable demand have the opportunity to participate in the real-time operation of transmission and distribution networks. This may be done by using the virtual power plant (VPP) concept, which consists of aggregating the capacity of many distributed energy resources (DER) in order to make them more accessible and manageable across energy markets. This paper provides an optimization algorithm to manage a VPP composed of a large number of customers with thermostatically controlled appliances. The algorithm, based on a direct load control (DLC), determines the optimal control schedules that an aggregator should apply to the controllable devices of the VPP in order to optimize load reduction over a specified control period. The results define the load reduction bid that the aggregator can present in the electricity market, thus helping to minimize network congestion and deviations between generation and demand. The proposed model, which is valid for both transmission and distribution networks, is tested on a real power system to demonstrate its applicability.

J. Oyarzabal

Papers

A Direct Load Control Model for Virtual Power Plant Management