The Influence of Smart Grid on TOU Programs With Respect to Production Cost and Load Factor, A Case Study of Iran

Reaching an electricity system which is both economically efficient and environmentally friendly is motivating countries to design and execute different types of TOU demand response programs. But there are certain deficiencies which prevent these programs to effectively modify the load shape. Smart grid as a means could help the electricity system to reach the highest demand side management goals which are inaccessible through today’s methods. In this paper, problems facing today’s demand response programs have been described and Iran’s recently designed TOU program has been analyzed as an example. The influence of this program has been simulated on Iran’s actual load curve. As a solution to the problems facing DR programs, Smart Grid has been introduced and the influence of Real Time Pricing (RTP) program in Smart Grid has been simulated on an actual load curve of Iran’s grid, using multi period load model and adaptive periods. Reaching market equilibrium and the effect of Smart Grid on price curve has also been simulated. Finally, the current TOU program designed for Iran and the RTP program in smart grid have been compared with respect to load shape modification, load factor, price curve, and production cost. Eventually, savings made possible through smart grid per day have been evaluated.