Optimization approach for load response in modern distribution networks

This paper presents an approach to determine the load demand response that aims at maximizing the benefits for distribution utilities and consumers through the optimization of unit costs within a practical tariff system. With the concept of smart networks, it is possible to develop more effective demand response programs and thus to improve the efficiency in the electrical energy use. The proposal is based on a nonlinear programming that gives variable tariffs and uses a linear time recovery model. The model is based on the Time of Use tariff in two and three tariff systems and the respective optimal values promote the demand response to maximize the overall benefits. A case study is introduced to show the effectiveness of the proposed method.