A Mathematical Model to Optimize the Running Cost of a Smart Grid System

Abstract

Increase in demand of electricity and frequent atmospheric changes have caught the interest of participants of energy market to initiate the concept of "Smart Grid Systems". Along with this, distributed energy resources have also become a major source of power production because of their unlimited supply and low installation cost. Thus, this research will provide heuristics for designing a scheduler to provide consistent power at an economic cost. Moreover, the power management in smart grids can have various cost functions based on client preferences, equipment configured in smart grids, capacity of smart grids, geographical area, government policies, tariff etc. The main aim of the research is to control additional cost functions according to owner’s comfort levels. The research will provide consistent power at an optimized cost and also reduces the cost linked with grid usage through net metering, while meeting the load demands in an era of blackouts and peak pricing hour market issues. Integration of different cost functions will also make the purposed system more efficient, smarter and closer to daily life power problems.