Evaluation and presentation of a new method for load shifting and optimization of industrial consumers in a smart grid using Time-of-Use (TOU) demand response program

Time-based demand response allows industrial and residential consumers to optimize or shifting their electricity consumption while following the daily price curve. However, traditional time-based demand response is not an active tariff. Power companies usually offer a common pricing tariff for all industrial consumers at the same voltage connection level. Under this scenario, power consumption conversion for all possible industries occurs simultaneously, which may reduce the effectiveness of load characteristic improvement. In this paper, a new pricing framework is introduced to overcome this weakness. In this tariff, consumers are classified into different categories based on their activity level and Time of Use (TOU) policy is applied with four peak pricing classifications. Power companies select target consumers, actively communicate with them and provide a specific price curve for the industries covered by the target consumer group. In this way, with the aim of reducing the cost paid to the network, the consumer is obliged to carry out load shifting and load optimization. Finally, we will examine the results before and after the program to check the usefulness of the proposed plan.

Keywords:

Demand Response , Time of Use , optimize , Smart Grid , shifting