Optimal Residential Load Management in Smart Grids: A Decentralized Framework

Severe peak rebounds are likely in absence of a system-wide coordination among customers participating in demand response programs. This paper aims to establish a decentralized system-wide framework to coordinate demand response of residential customers in a smart grid. The objective of the framework is to modify system load profile provided that customers' payments are minimized, and their comfort and privacy are preserved. Home load management (HLM) modules, embedded in customers' smart meters are autonomous agents of the framework. The energy service provider iteratively exchanges load information with HLM modules in the hope of achieving his desired load profile. In each iteration, the service provider announces system load profile to HLM modules. The modules, keeping in mind their own financial and comfort constraints, nonsequentially send back load reschedule proposals to modify system load profile. The received proposals are judged whether they improve system load profile or not. HLM modules with accepted proposals apply their proposed schedules. The modified system load profile is then released, and HLM modules' new proposals are gathered and judged. This procedure is repeated to the point at which no further improvement in the system load profile can be experienced. Performance of the framework is shown by applying it to a system with 50 customers.