Energy management algorithm for peak demand reduction

Peak demand is an important issue for power systems. Because, marginal cost of supply might increase due to the continuous increase in peak demand. Besides, peak demand might give rise to the power outages. The residential sector is one of the most important sectors affecting the peak demand. Along with the continuous increase in residential loads, peak demand causes adverse effects to the stability and reliability of a power system. The investigation for peak load reduction methods in residential sector contributes to the international efforts in reducing energy consumption. Moreover, demand side management and demand response in residential sector play a key role in reducing peak demand. Hence, load management system was performed to analyze the effects of the demand response for residential sector using Matlab/Simulink in this study. Some residential loads such as washing machine and dishwasher were shifted from peak times to off-peak times using energy management system in order to reduce peak demand. According to the results, the electricity saving is 6.5063 kWh during on-peak times.