ABSTRACT
The term smart grid refers to modernization of the power network so that it monitors, optimizes and can take preventive action in the operation of its interconnected elements – from the central generation through the high-voltage transmission network and the distribution system, to the industrial and domestic user. Ongoing development of smart metering has made demand response an indispensable part of real-time operation and control of modern grids. The optimization not only looks for a generation schedule, but also demands consumer welfare in terms of distributed load curtailment, less penalty and formidable load schedule. The insight of this chapter develops a curtailment index (CI) to trace the eligibility of the participants to retain their position in the market and an acceleration factor (AF) to hasten the optimization with the required level of accuracy. Instead of penalising for concentrated increase of demand, the described optimization approach effectively segregates the participants to impose a distributed load curtailment to reduce the volatility of price of electricity in the market.
