Dynamic economic dispatch with demand side management of individual residential loads

Minimizing generation costs is one of the main purposes for system operators, since it decreases the customer´s energy costs and consequently increases the social welfare. Economic dispatch (ED) can be considered as a useful tool to determine the optimal generation cost. Extending the ED over multiple time steps is called the dynamic economic dispatch (DED). Demand side management (DSM) is a key component of smart grids that can have a lot of benefits to power system operators and customers. This paper aims to assess DSM potential impacts on electricity generation cost by considering the detailed and practical model of individual residential loads. For flexible loads, we assume various household appliances with different acceptable delay times (ADTs) within which their consumption can be shifted from the normal schedules. This problem was simulated on the 15-generators test systems. The results show that the first few MWs of shifting in demand bring out the largest decrease in generation costs.