A novel demand side management by minimizing cost deviation

In the recent times power shortage has been a major setback to deal for the effective operation of power systems. Bridging the gap between generation and demand is known as Demand Side Management (DSM). For an effective DSM strategy to be implemented, it is crucial that both utility and customers be involved. By DSM, the energy generated is used more effectively. This reduces the burden of the utility to invest on additional generation. In this work, a DSM strategy has been performed on two systems: (i) on RTS 24 bus system with wind energy sources distributed at some nodes of the system (ii) on an institutional load with installed solar power plant. A generic DSM strategy to effectively utilize the generated energy and to minimize the utility bills for the customer has been proposed. An instantaneous billing scheme has been proposed. By implementing the instantaneous billing scheme, customers can be persuaded to change their consumption behavior, matching the demand with available generation. The results obtained are promising, with a resulting flat load profile and reduced utility bills for the customer.