Local measurements and virtual pricing signals for residential demand side management

Abstract

Demand side management and response schemes have the potential to reduce peak demand and improve grid utilization (improving the peak-to-base ratio). Existing methods often rely on accurate predictions or knowledge of the future demand, and most require a bi-directional communication infrastructure. This paper proposes two novel demand management approaches that do not have either of these requirements. The demand management problem is formulated as a constrained optimization problem to meet end-user energy demand subject to the physical limits of the electrical network. The adopted model focuses on the last mile of distribution networks and accounts for transformer load, line load and phase..