Optimal power scheduling for green smart grids with renewable sources

In this paper, we study demand response management and power scheduling in a smart grid with renewable energy sources represented by a wind farm. Total social welfare, defined in terms of consumer utility and cost of energy production (both scheduled and renewable), is maximized while the probability of energy shortfall due to the uncertainty in renewable production is limited by an upper bound. We find the outage-limiting optimal conventional energy production and consumption schedules, and investigate the impact of the statistical relationship between the turbines in a wind farm.