Demand Side Management and the Improved Energy Cost Factor of Distributed Energy Generation †

Abstract

To ensure the flexibility and reliability of the power system demand and supply, demand side management with distributed generation is a tool to manage the high demand. In the present work, the demand side residential energy management for household equipment is investigated. Loads of units are divided according to priority. Every individual load is smart enough to switch on/off itself with respect to the power generated from the distributed source. Experiments are performed using MATLAB Simulink and the results showed improvements in electricity bills. Real-time pricing in the present system of billing is more economical than a flat rate system. When distributed resources are connected with the units, then flat rate billing is also more economical than real-time pricing.