Optimal Demand Side Management by Distributed and Secured Energy Commitment Framework

Abstract: This paper introduces a demand-side distributed and secured energy commitment framework and operations for a Power Producer and Supplier (PPS) in deregulated environment. Due to the diversity of geographical location as well as customers' energy profile coupled with high number of customers, managing energy transactions and resulting energy exchanges are challenging for a PPS. The envisioned PPS maintains several aggregators (e.g. Microgrids), named as Sub Service Provider (SSP) that manage customers/subscribers under their domains. The SSPs act as agents that perform local energy matching (inside their domains) and distributed energy matching within SSPs to determine the energy commitment. The goal of the distributed energy matching is to reduce the involvement of External Energy Supplier (e.g. Utility) while providing a platform to demand side players to be a part of energy transaction. A distributed assignment problem is designed that requires minimum and aggregated information exchange (hence, secured) and solved by Linear Programming (LP) that provides the distributed matching decision. The communicative burden among SSPs due to the exchange of energy information is reduced by applying an adaptive coalition formation method. The simulations are conducted by implementing a synchronous distributed matching algorithm while showing the effectiveness of the proposed framework.