An efficient scheduling algorithm for solving load commitment problem under Time of Use Pricing with bound on Maximum Demand

Under Demand Response (DR) scheme, time dependent tariff such as Time of Use Pricing (TUP) could be employed extensively to motivate the consumer to schedule the loads evenly so that the Maximum Demand (MD) on the system is reduced. However, if TUP is employed, use of the scheduling algorithm will benefit the consumer but not the utility as the MD will not get reduced but shifted. Hence in the future pricing schemes there will be a component dependent on the MD. In this paper, we develop an efficient algorithm which can be used under TUP with a bound on the MD. In our algorithm, the constrained optimization problem is converted to an unconstrained problem using the standard Lagrange multiplier approach.