Demand response for indirect load control in smart grid using novel price modification algorithm

This study presents a novel algorithm for reshaping the load demand profile of smart grid via modifying the price signal based on demand response principle. This modification in price is performed in a way that encourages customers to change their consumption pattern in order to achieve maximum saving. The proposed algorithm takes into consideration the customer willingness to participate in demand response, demand elasticity, price change limit, and comfort level of customers by determining a price signal, which maximises their saving when shifting their flexible load for certain limited hours and satisfying the daily energy consumption. The proposed method is formulated in a way, which avoids the problem of load synchronisation in which the maximum demand point is shifted to the point of lowest price. The proposed algorithm is applied to a typical benchmark of smart grid with residential, commercial, and industrial loads. The simulation results prove the success of the proposed algorithm for maximising customer saving and achieving the objective of energy management via a new consumption pattern.