A New Algorithm for Controlling the Consumption Level of Distribution Customer with Smart Meter and Calculating the Participation Reward

Demand side management is one of the most important scheme for providing the electrical power at peak times. In Iran, system operator concentrates on contribution of industries in demand response (DR) programs in order to decrease load consumption, thus increasing the capacity of the network and avoiding the cost of erecting new power plants. However, about one-third of network subscribers are home consumers at the distribution level who can make significant contributions to load management plans. With the advance of technology, power distribution networks are now equipped with modern smart metering capabilities that provide control and intelligence tools in the network. One of the features of these smart meters is the capability to remotely control the consumption level of consumers. With the help of new smart equipment such as smart meters, when the system lacks power, the system operator can prevent system black out or using load shedding, by reducing the level of consumption of domestic users. Under such circumstances, every user have at least minimum electricity to feed some essential appliances. In this paper, a new algorithm is proposed for controlling the consumption level of subscribers with a smart meters based on prioritization, by dividing subscribers into three groups, namely volunteer, normal and sensitive. The participation rewards have been adapted based on the industrial demand response plan in Iran.