An Incentive-based Optimal Energy Consumption Scheduling Algorithm for Residential Users

Abstract

Smart Grid is the most promising concept which is more reliable, flexible, controllable and environment friendly. Home energy management (HEM) system is an important part of the smart grid that provides a number of benefits to the end users such as savings in the electricity bill, reduction in peak demand and meeting the demand side requirements. Demand Response (DR) and Time-of-Use (ToU) pricing refer to programs which offer incentives to the end users who curtail their energy use during times of peak demand. This paper proposes an energy efficient optimization model based on Binary Particle Swarm Optimization (BPSO) for residential electricity consumers. The proposed model optimally schedules the electricity consumption of different household appliances in a dynamic pricing environment to benefice the user by minimizing electricity cost. Simulation results illustrate that the proposed method efficiently shifts the appliances operation time from high peak to low peak hours and leads to significant electricity bill saving.