Billing mechanism design in an autonomous demand side management in a smart distribution network

In an autonomous demand-side management (A-DSM), there is an interaction between the customers in addition to the conventional interaction among the utility and the customers. Most prior works on A-DSM have not impacted a distribution grid in calculating the customers' payment. In this paper, a distributed billing mechanism is suggested for A-DSM that takes into account not only the load profile and the load flexibility of each consumer, but also the effect of the consumptions' position in the grid, i.e., the impact of each customer's load on the power loss and the voltage profile deviation in the distribution network. The A-DSM program in this study includes both the load reduction and the load shifting approaches within a 24-hour scheduling time scope. The efficiency of the proposed mechanism is investigated on several distribution networks via simulation. The results show that while the proposed mechanism considers the power loss and the reactive power issues of distribution network, its efficiency is acceptable in the sense of total cost, Peak to Average Ratio and fairness.