Efficient hybrid pricing for optimal DSM of home energy management system utilizing load precedence

摘要

This article proposes a home energy management system (HEMS) to minimize the energy consumption for residential loads by demand side management (DSM) based on pricing signals. With introduction of DSM, the electricity utility offers several pricing schemes to influence the consumers to participate actively in DSM by means of flexible load shifting. This article proposes a new, efficient, and hybrid pricing scheme and compares its effect on minimizing energy cost with existing pricing methods. The article has two main contributions, the first one being the introduction of the hybrid pricing strategy, which performs better than the existing pricing schemes with reduced complexity in terms of implementation. Secondly, it also studies the effect of load precedence in case of flexible load shifting, that is, when the consumers decide to shift their peak time load to a off-peak slot, the order at which individual loads are shifted affects the performance of the HEMS. The article also draws a comparison of the pricing schemes for a HEMS and proves the superiority of the proposed hybrid pricing method.