Mutual benefit analysis of price-responsive demand response program for demand-side load management through heuristic algorithm by scheduling of multi-classifier residential unit under TOU tariff regulation

Under the umbrella of a smart grid environment, demand response (DR) is a comprehensive way to make the best use of household energy consumption. DR refers to the rescheduling of household energy consumption in response to the pricing signal received from the utility. Interoperability enables the DR loads to communicate with the utility through a smart meter to plan the energy consumption according to the pricing signal received. This paper presents an exclusive tri-objective model that considers real-time data of different parameters like peak, off-peak demand, and time of use pricing signal and performs optimal scheduling to reduce the overall energy expenses, peak-to-average power ratio (PAPR), and improve the load factor (LF) of the system over the entire horizon. Proposed planning considers the least, and highest priority loads for an optimal implementation of proposed planning. The proposed planning is implemented for a time horizon of 30 days. A price-responsive DR model is effectively implemented based on time of use tariff regulation. Based on predefined parameters, a proposed algorithm shifts the least priority load from peak hours to off-peak hours without disrupting the highest priority. Proposed planning is a Heuristic problem tackled as Mixed integer linear programming, mathematically solved in MATLAB. The results demonstrate that; the proposed planning effectively reduces the cumulative energy expenses by 13.36% for the end customer, improves the LF of the system by 5.11%, and reduces PAPR by 15.22% to improve the stability margin of the system. Finally, sensitivity analysis has been performed based on varying peak tariffs which shows the effectiveness of the proposed approach. The results clarify the effectiveness of the proposed model for both customer and utility ends.