Demand Side Management in the Smart

Grid

Nitu Barua

Master of Telematics - Communication Networks and Networked Services (2

Submission date: May 2013
Supervisor:
Finn Arve Aagesen, ITEM
Co-supervisor:
Finn Arve Aagesen, ITEM

Norwegian University of Science and Technology

Department of Telematics

Problem Description
Name of student: Nitu Barua
Title of the Thesis: Demand Side Management in the Smart Grid
Smart Grid is vision concept with many features (ref. 1, 2, 3, 4). One
of the focused features is Demand Side Management and Smart Metering.
1. Make a conceptual model that defines the Domains, Applications and
Actors related to Demand Side Management and Smart Metering.
2. Make an overview of ongoing plans and experiments with Demand Side
Management and Smart Metering.
3. Define alternative Actor models that realize the conceptual model and
discuss pros and cons.
References:
1. Cen, CENELEC, ETSI: Smart Grids Coordination Group technical Report. Reference Architecture for the Smart grid. Version 1.0, 2012-03-02.
2. NIST: NIST Special Publication 1108: NIST Framework and Roadmap
for Smart Grid Operoperabiligy Standards, Relese 1.0.
3. CIRED: Smart Grids on Distribution level Hype or Vision, Final Report
23.05 2013.
4. Bernt Ingvald Sunde: The Energy grid of the future, MSc thesis Department of telematics, 2005.
Assignment given: Department of Telematics, NTNU
Supervisor: Finn Arve Aagesen, Department of Telematics, NTNU

Demand Side Management in the Smart Grid

Nitu Barua
M.Sc. in Telematics-Communication Networks and Networked Services
Norwegian University of Science and Technology (NTNU)
nitubarua 2005@yahoo.com

Master Thesis

Responsible Professor: Finn Arve Aagesen, ITEM

Supervisor: Finn Arve Aagesen, ITEM

Department of Telematics
Norwegian University of Science and Technology (NTNU)
Trondheim 7491
Norway
July 14, 2014

Executive Summary
Demand Side Management (DSM) is associated to Smart Grids and means
adapting the electricity demand to the electricity production, transmission, and
distribution in the grid. Smart Grids and Demand Side Management hold potential increase share of energy sources to distribute energy, reduce the need for the
energy, and reduce the cost of the power for customers. The core objective of DSM
is to flatten the load over time by shaving the peaks and to transfer as much of the
flexible demand as possible way from peak time into periods of lower activity.

The aim of my thesis is to design a conceptual model, which defines the Domains
included Applications and Actors related to Demand Side Management and smart
metering. Afterward, I have analyzed ongoing plans and experiments with Demand
Side Management and Smart Metering. The last part of this thesis is focused on
design of alternative Actor model and discuss pros and cons. Then address the
conclusion and future work.

Acknowledgement
This Masters thesis is submitted for partial fulfillment of the requirements for the degree
of Master of Science to the Norwegian University of Science and Technology (NTNU).
This assignment is formulated and has been performed at the Department of Telematics,
NTNU, Trondheim, Norway, with Finn Arve Aagesen as professor and supervisor as well.

I would like to express my sincere gratitude to my research directors Prof. Finn Arve
Aagesen for proposed this assignment, continuous guidance, suggestions, essential encouragement, timely, specific, detailed feedback and valuable comments during my studies on
the thesis. I would also like to thank to the staffs of the Department of Telematics for
providing necessary equipment during my study period.

Finally, and most importantly, I am deeply grateful to my beloved parents for always
loving, encouraging and supporting me.

Trondheim, July 14, 2014

Nitu Barua

ii

Contents
1 Introduction

1.1

Motivation for the Thesis . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.2

Overview for the Demand Side Management and Smart Grid . . . . . . . .

1.3

Outline of the Thesis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 Background

2.1

Demand Side Energy Management . . . . . . . . . . . . . . . . . . . . . .

2.2

Demand Side Management in the Smart Grid . . . . . . . . . . . . . . . .

2.3

Smart Grid Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

2.4

Demand Side Management Techniques . . . . . . . . . . . . . . . . . . . . 13

2.5

Domain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2.6

Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.7

Actors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.8

Interfaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.9

Associations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

2.10 Smart Meters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

2.11 Demand/Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.12 Smart Demand Response pattern for Customer Side Load Management . . 19
2.13 Energy Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.14 Dynamic Management System . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.15 Smart Appliances and Home Automation System . . . . . . . . . . . . . . 23
2.16 Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2.17 Smart Controlling System . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
3 A Proposed Conceptual Model
3.1

29

A Conceptual Model that defines the Domain included Applications and

Actors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

3.2

The behaviors of the proposed Conceptual Model using Sequence Diagram

3.2.1

30

The behaviors which are requested initiatively from Distribution

Service Operator . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

3.2.2

The behaviors which are requested initiatively from User . . . . . . 33

iii

4 A Proposed Alternative Actor Model

4.1

36

A Alternative Actor Model, which controlled DSM in the Smart Grid from
Utility Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

4.2

The behaviors of the proposed Alternative Actor Model using Sequence

Diagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
4.2.1

The behaviors based on per hour price of electricity . . . . . . . . . 37

4.2.2

The behaviors of load shedding for a period . . . . . . . . . . . . . 39

4.2.3

Pros and Cons of Alternative Actor Model . . . . . . . . . . . . . . 41

5 An Overview of Ongoing Plans and Experiments with Demand Side

Management and Smart Metering

44

6 Results and Discussion

6.1

47

Evaluation and Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

7 Conclusion and Future Work

50

7.1

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

7.2

Future Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

iv

List of Acronyms
DSM: Demand Side Management
SG: Smart Grid
CEMS: Customer Energy Management System
DR: Demand Response
PLC: Power Line Communication
NIST: National Institute of Standard and Technology
CIRED: Congress International on Research Electricity Distribution
CENELEC: European Committee for Electrotechnical Standardization
ISOs/RTOs: Independent System Operators and Regional Transmission Organizations
RMUs: Ring Main Unites
LDC: Local Distribution Company
DSO: Distribution System/Service Operator
AMI: Advanced Metering Infrastructure
IP: Internet Protocol
RTP: Real-time Pricing
PUC: Personal Universal Controller
RES: Renewable Resources
EU: European Union
DTN: Data Transmission Network
AMI-H: Advanced Metering Infrastructure-Host
MDMS: Meter Data Management System
ERDF: Electricit Rseau Distribution France
IBM: International Business Machine
ESI: Energy Service Interface
HERS: Home Energy Rating System

Introduction

Demand Side Management (DSM) is a key solution for peak-time power consumption
problem in Smart Grids. DSM should taken into account by the utility company for
charges consumers differential pricing for using power at different times of the day. These
differential pricing is important for deciding, when and how much power is consumed
daily. In this case, the smart grid is used to provide a more reliable and economically
efficient power system. Consumers, who are equipped with smart meters, the utility company easily sells electricity to such consumers and smart meters exchange information to
adjust electricity prices for utility company. Smart Grid is the addition and integration
of many varieties of digital computing and communication technologies and services with
the power-delivery infrastructure. Bidirectional flows of energy and two-way communication and control capabilities can enable of new functionalities and applications that go
well beyond smart meters for homes and businesses [1]. I will discussed more on Smart
Grid in chapter 2.

DSM is a essential concept to make smart grids more efficient and cost-effective. DSM
might be refers to the programs, which are adopted by utility companies to directly or
indirectly influence the consumers power consumption behavior in order to reduce the
power consumption ratio of the total load in the smart grid system. On the other hand,
DSM maintain energy management system, which is responsible for control in optimizing
energy generation and distribution according to the consumers requirements. In this
case, DSM also works for a portfolio of measures to improve the energy system at the side
of the consumption.

Demand Response (DR) provides means for utilities to reduce the consumption and save
energy. In addition, it maximizes utilizing the current capacity of the distribution system
infrastructure, reducing or eliminating the need for building new lines and expanding the
system. In general, a typical DR program requires two parties to cooperate: the utility
and the customers. DR has an vital role to act in the electricity market for maintaining
the balance between supply and demand by addressing load flexibility. There might be
many actors in the markets who get benefit from DR , like the DSO, retailers and end1

customers themselves. In this case, DR is a part of the system operations in the smart
grid driven restructured power system in the conceptual model [5].

The aims of research in this paper is to handle DSM and smart metering in the smart grid.
The objectives of this thesis are to design a conceptual model that included the applications and actors related to DSM and smart metering, discuss on an overview of ongoing
plans and experiments with DSM and smart metering, and another design of alternative
actor model, which needs attentiveness to discuss pros and cons. There are three tasks
in the problem description of this thesis and all tasks will be completed. According to
my view, task 3 should completed before task 2 for effective analyzed. From this aspects,
task 3 will discussed in chapter 4, and task 2 will discussed in chapter 5.

The contribution of the research is to put forward an original point of view on energy
management for the consumption site, and utility site of the smart grid. DSM and smart
metering systems are enabled efficient energy management in electricity market. In my
proposed conceptual, there are variety behaviors to controlled DSM from consumption site
and these behaviors will discussed. The various behaviors of a alternative actor model will
addressed from utility site, and these behaviors are essential to maintained DSM in the
smart grid. The contribution of this research is the harmonization of different scheduling
and optimization techniques in a way that can take advantage of the time scale and price
scale separation of energy requests in dwellings. Another contribution of this research is
to analyzed for previous research and experiments, and analyzed for ongoing plans and
experiments from variety countries in the world to handled DSM and smart metering .

1.1

Motivation for the Thesis

DSM can be draw attention on load profile variation in order to change the consumption with production and distribution capacity. It is also possible to shift electricity
consumption with respect to production or prices consideration or both using DSM. Consumers can take advantage of a possible low prices policy with different time-variant tariff
schemes. Nowadays, the adaptation to power production becomes of special interest in
Smart Grids, because the energy available is not only limited but also misused by con2

sumers. Although using DSM, the energy efficiency can also be improved in large system
with smart grid. Such improvements can provide more efficient distribution, since the
consumption power peak decreases, and the losses should decreases too. Therefore, the
main motivation with DSM is to decrease the amount of energy consumed, to increase
the utilization and efficiency of the production, distribution and decrease the total cost
for the user.

1.2

Overview for the Demand Side Management and Smart

Grid

The vision of the smart grid is the deployment of smart meters that will allow representing the consumers, to optimize their use of devices and heating in the smart home while
interacting with the grid. On the other hand, smart grid includes various technologies
that enable the efficient integration of intermittent energy sources such as wind or solar
energy and will reduce demand by allowing consumers to better manage how electricity
is used, stored, and delivered. One of the key pin point of this endeavor is the concept of
the smart meter, which goals to manage the devices in the home or industry to minimize
inefficiencies in usage and maximizes the users savings. Smart meters also approach to
interact with the grid in order to reduce peaks in demand and keep up with variable
output from energy generators. If these ideal features of smart metering materialize, they
may lead to significant reductions in energy costs while guaranteeing security of supply.
Smart meter is mainly designed to act as information provisioning devices that tend to
leave it to the user to manage devices in the home or industry, which will reduce their
energy demands.

DSM is also designed to alter the behavior of users by inducing the devices via the smart
meter, to turn off or on when the network signal them. DSM should be essential technique
for the smart grid. Users might get offer from energy companies for billing discounts and
be sensitive to how electricity consumption preferences vary with time of day. The grid
is designed for peak demand rather than the average load and to achieve a high level
of reliability and robustness in power systems [1]. In general, different techniques have
been proposed to shape energy consumption profiles of the user and such techniques allow
3

the available generation and distribution capacity to be employed more efficiently. These
techniques known as demand side management, which has aim to reducing consumption
or shifting consumption according to the users demand. In the demand side management, load shifting is a demand response (DR) programs transfer customer load during
period of high demand to off-peak periods and can reduce critical peak demand or daily
peak demand. Shifting daily load demand can flattens the load curve, allow to provide
more electricity by less expensive base load generation. Smart pricing should provide
appropriate incentives for individual users to participate by discounting their electricity
bills in DSM programs. Users may also have different energy consumption preferences at
different times of day. A function of load at different times of a day can able to quantify
the level of satisfaction of each user [13].

Figure 1: Sketch of the Smart Grid Interfaces to the near future Customer Domain [1].
The interface between the Smart Grid and the customer domain is visible part, which is
addressed in Figure 1. This inter-operation is the key element for the success of near fu4

ture power system. There are seven domains of this interfaced conceptual model. Among
them, the customer domain - industrial , commercial, and residential sectors. The residential is the primary energy consumer. Therefore, its must be necessary in the customer
domain to inter-operate with energy resources in order to achieve the goal of smart grid,
which will be contribute to balance the power demand with supply. In general, the customer inter-operation is realized via a number of customer energy services. National
Institute of Standards and Technology (NIST) defines two gateway actors to enable the
services across the customer domain. Such as utility meter and Energy Service Interface
(ESI). They place at the boundary of the customer domain and exchange energy data
between the customer domain and other external domains which might be distribution,
operation, and market. They take the bridge role for inter-domain communications and
fully controlled by a utility company, the utility meter measures and collects aggregated
energy usage data for the customer billing purpose. The ESI is expected to process most
emerging energy service data. A number of customer energy services are realized over
the interconnected communications, which can contributes to smart grid inter-operation.
The ESI must serve as both a service consumer and a service provider to facilitate bidirectional customer energy services. It also protect the customer energy resources from
external threats and maximize the inter-operation [1].

1.3

Outline of the Thesis

The following structure of the thesis is addressed:

Chapter 2 represents the background, and demand side energy management and demand
side management in the smart grid. This chapter will explained about domain, applications, actors, smart meter, demand/response, dynamic demand, smart appliances, energy
efficiency and energy controllers, and how they works for a DSM in the smart grid.

Chapter 3 sketches a proposed conceptual model, which will draw attention on the demand side management and smart metering. I will explained, how actor and application
works in a conceptual model.

Chapter 4 sketches a proposed alternative actor model, and presents pros and cons.

Chapter 5 presents an overview on the ongoing plans and experiments.

Chapter 6 describes the results of my analysis as well as proper discussion.

Chapter 7 represents the summarizing the contributions of my thesis and further recommendation for open problems, which might be worth analysis in the future.

Background

DSM is a set of interconnected and flexible programs that allow customers a greater role
in shifting their own demand for electricity during peak periods, and reducing energy
consumption from unnecessary used. DSM mainly control two functions, one is demand
response, which might be called load shifting, and other function is called energy efficiency and conservation. Energy conservation function of DSM encourage customers to
give up some energy use in return for saving money such as turning up appliances, which
is unnecessary used. On the other hand, energy efficiency function allow customers to
use less energy while setup the same level of end service such as new appliances with a
more efficient energy model. As for example, pilots can able to that real-time access to
information provided can reduce energy consumption by up to 20 percent through smart
grid networks. Additional benefits in energy efficiency are possible through technologies
that can provide expected real-time verification of customer demand reduction [2].

The smart grid is the deployment of smart meters that might allow different software
agents, representing the consumers, to optimize their use of devices in the smart appliances when devices need to interact with the grid. Smart meters also aim to interact
with the grid regarding to help for reduce peaks in demand. In general, the smart grid
represents more potential opportunity to move the energy industry into a new sector for
reliability, availability, and efficiency that will contribute to real economic. There are
many benefits of the smart grid [1]. Such as:

a. Improves power reliability and quality, and optimizes facility utilization and averts
construction of back-up (peak load) power plants.
b. More efficient transmission of electricity.
c. Quicker restoration of electricity after power disturbances.
d. Reduced operation and management costs for utilities, and ultimately lower power
costs for consumers.
e. Development and incorporation of demand response, demand side resources, and energy efficiency resources.
f. Integration of smart appliances and consumer devices.
7

g. Reduced peak demand, which will also help lower electricity rates.
h.Better integration of customer-owner power generation systems, including renewable
energy systems.
i. Improved security.

2.1

Demand Side Energy Management

Energy demand side management is the modification of consumer demand for energy and
the purpose of this modification is to encourage the consumer to use less energy during
peak hours. Total energy consumption does not essentially decrease by peak demand
management, but could be expected in power plants to reduce the need for investments
for meeting peak demands. This can be more challenges to handle a reliable, dependable,
and affordable electricity supply. There might be introduces some challenges [7]. such as

1.To achieve a more efficient use of the generated electricity of existing power plants.
2. To facilitate the large scale addressing of renewable sources.
3. To allow a burst scale introduction of related technologies for consumption, and storage
of energy, which is required while maintaining grid stability and ensuring a reliable and
affordable supply.

Although demand side energy management might be focused to build communication

between appliances and user energy manager, and energy manager may enable is to make
profile of the energy consumption for both customers and utilities. On the customer side,
such information can allow to smooth schedule for the user activities considering the energy price. On the utilities side, it can be extremely useful for the optimization of energy
dispatch and to distribute energy with efficiently to the users but it need to make sure to
reduce electricity supply as much as possible if users is going used unnecessary amount of
energy [8].

2.2

Demand Side Management in the Smart Grid

DSM is to deliver electricity in the smart grid as much of the reliable demand as possible way from peak time into periods of lower activity. A reliable and efficient approach
8

would help to create small scaling for the existing grid infrastructure feasible without
effect negatively on total power consumption. The Smart Grid can provide a mechanism
under a functional point of view as an electric network able to integrate all the branched
customers, and producers actions to distribute electric energy efficiently, sustainable, at
low operating costs and secure electricity supplies. DSM needs some features, which can
provided by the smart grid. To distribute such features, the smart grid is to be interconnected system of information and communication technologies, and electricity generation,
transmission, distribution, and end-use technologies, which will be potential to enable
consumers to manage their usage and choose the most economically efficient energy service offerings, enhance delivering system reliability and stability through automation, and
improve system integration of the most environmentally adapt generation with alternatives including renewable resources and energy storage [1].

In general, power is generated at remote, centralized plants and then transmitted to

load centers over high-voltage transmission lines before being distributed to the consumers. Our grid infrastructures, and the systems that monitor and control them. Such
mechanisms are going to be outdated. But the smart grid is a multi-faced solution to
the problem of modern energy delivery. It reconstructs a shift toward a more flexible
network topology that encourages two-way power flow between the grid and large-scale
distributed power resources. The smart grid can also bring about an exponential increase
in the amount of information coming from the grid and being fed to network operators,
utility executives and consumers for increased visibility and control. Environmental and
economic sustainability are essential variables in the current energy equation. But existing infrastructure and systems lack the flexibility to evolve to meet higher demands for
efficiency and reliability. The smart grid is able to return balance to the cost-benefit
paradigm by introducing intelligent response into the interaction between supply availability and demand. The utilities will be able to work with consumers to produce the
most cost-effective and efficient supply mix from taking the help of markets and real-time
system information [2].

The smart grid can be interactive for both power generation sources and power consumption loads and utilities will enable end users to produce their own electricity and
9

participate in DSM programs. A high speed, two-way communication infrastructure, intelligent metering and electronic electric control technologies represent the gateway for
access to the grid of the future. The transmission and distribution infrastructure of the
smart grid can be a web-like network of interconnected nodes. Consumers and generators
of all sizes can be tied together with new grid components, such as energy storage units
and intermittent renewable supplies.

The Figure 2 sketches the interaction of actors in different Smart Grid Domains. I have
described the seven Smart Grid domain as following [1]:

Customers: The end users of electricity. May also generate, store, and manage the use
of energy. Traditionally, three customer types are discussed, each with its own domain:
residential, commercial, and industrial, which are also counted in my proposed conceptual
model.
Markets: The operators and participants in electricity markets.
Service Provider: The organizations providing services to electrical customers and utilities.
Operations: The managers of the movement of electricity.
Bulk Generation: The generators of electricity in bulk quantities. May also store energy
for late distribution.
Transmission: The carries of bulk electricity over long distances. May also store and
generate electricity.
Distribution: The distributors of electricity to and from customers. May also store and
generate electricity

The smart grid structure represents the power communication system view and how its
interact among the seven domains in the Figure 2. The smart grid is an electric network integrating power generation, transmission, and distribution to support customers
request. The operation of such a system is enabled by a communication infrastructure
that connects everything from everywhere in the grid. Nevertheless, there is a need of
control systems at every level of the grid to make this integration functional, efficient,
and effective. A complement of power system view is then the communication control
10

Figure 2: Sketch of the Smart Grid Structure [1].

system view, which can be seen in Figure 2. This will lead to a more efficient, reliable,
and sustainable energy infrastructure, which will provide [1]:

a. Operational Efficiency: with distributed generation, network optimization, remote

monitoring, improved assets utilization, and preventive maintenance.
b. Energy Efficiency: with reduced system and line losses, improved reactive load control,
peak-load shaving, and accomplishment about energy saving.
c. Customer Satisfaction: the grid will improve the communication between producers
and consumers, and the smart grid will enable customers self service.
On the other hand, demand side management is an function of the smart grid in energy
11

management, which provides different smart grid functionalities in various areas such as
electricity market control and management, infrastructure construction, and management
of decentralized energy resources and electrical vehicles. Controlling and influencing energy demand can reduce the overall peal load demand, and increase the grid sustainability
by reducing overall cost level. Efficient demand side management can able to potentially
avoid the construction of an under-utilized electrical infrastructure in terms of generation
capacity, transmission lines and distribution networks. In other way, smart pricing is a
unique criteria of smart grid by usage of smart metering devices in the automatic metering infrastructure. It might be cost-effective pricing based on the entire supply chain of
delivering electricity at the certain location, quantity, and period. When smart pricing is
used according to DSM, the energy usage is controlled for the satisfaction of customers
and distributors.

2.3

Smart Grid Characteristics

There are distinguishing characteristics of the smart grid [1]. Such as:

i. Increased use of digital information and controls technology to improve reliability,

security, and efficiency of the electric grid;
ii. Dynamic optimization of grid operations and resources, with full cyber security;
iii. Deployment and integration of distributed resources, and generation, including renewable resources;
iv.

Deployment and incorporation of demand response, demand-side resources, and

energy-efficiency resources;
v. Deployment of smart technologies for metering, communication concerning grid operations and status, and distribution automation;
vi. Integration of smart appliances and consumer devices;
vii. Deployment of integration of advanced electricity storage and peak-shaving technologies, including plug-in electric and hybrid electric vehicles, and thermal-storage air
conditioning;
viii. Provision to consumers of timely information and control options;
ix. Development of standards for communication and interoperability of appliances and
12

equipment connected to the electric grid, including the infrastructure serving the grid;
and
x. Identification and lowering of unreasonable or unnecessary barriers to adoption of
smart grid technologies, practices, and services.

2.4

Demand Side Management Techniques

There might be many DSM techniques and it will be useful to the smart grid networks.
The primary objective of the demand side management techniques can be presented for
reduction of system peak load demand and operational cost. The utilities are able to
offer different incentives to respective customers for direct control over selected loads by
grouping the loads of the customers. In a smart grid, demand side management strategies
need to handle a large number of controllable loads of several types. Loads can have
characteristics which spread over a few hours. Hence, the strategies should be able to
deal with all possible control periods of a variety of controllable loads [31].

DSM can be alternative patterns for customers electricity consumption to produce the
desired changes in the load shape of power distribution systems. The changes in the
final consumption patterns should depend on the planning objectives and operation of
the utility companies. DSM focuses on utilizing power saving technologies, electricity
tariffs, and environmental policies to mitigate the peak load demand instead of enlarging
the generation capacity or reinforcing the transmission and distribution networks. The
electricity demand is increased to mitigate system instabilities, a suitable objective of
demand side management activities could change the shape of the load demand curve.
The load shapes which indicate the daily or seasonal electricity demands of industrial,
commercial, and residential consumers between peak and off peak periods can be altered
by means of broad techniques [31]. Such as:

i. Peak Clipping.
ii. Valley Filling.
iii. Load Shifting.
iv. Strategic Conservation.
13

v. Strategic Load Growth.

vi. Flexible Load Shape.

These DSM techniques that can be employed in the smart grid. Peak clipping and Valley
filling are focused on reducing the difference between the peak and valley load levels to
mitigate the burden of peak demand, and increase the security of smart grid. Peak clipping is a direct load control technique to make reduction of the peak loads, and valley
filling constructs the off-peak demand by applying direct load control. Load shifting is
widely applied as the most effective load management technique in current distribution
networks. Load shifting takes advantage of time independence of loads, and shifts loads
from peak time to off-peak time. Strategies conservation aims to achieve load shape optimization through application of demand reduction methods directly at the customers
side. The distribution management system has to consider this for longer term implications of demand reduction on network planning and operation. Strategies load growth
optimizes the daily response in case of large demand introduction beyond the valley filling
technique. It is based on increasing the market share of loads supported by energy resources. It is also a planning and operations issue to balance the increasing demand with
processes for constructing necessary infrastructure that accompanies load growth. The
smart grid for demand side management has to provide the necessary infrastructure for
strategic load growth. Flexible load shape is mainly related to reliability of smart grid.
Smart grid management systems identify customers with flexible loads, whic are willing
to be controlled during critical periods in exchange of various incentives [32].

2.5

Domain

Domain is a high-level grouping grouping of organizations, buildings, individuals, systems,

devices or other actors that have similar objectives and that rely on or participate in similar types of applications. Communication among actors in the same domain may have
similar characteristics and requirements. Domain may contain sub-domain [1]. Domain
also encompasses the smart grid actors and applications. Moreover, domains have much
overlapping functionality, as in the case of the transmission and distribution domains.
Transmission and distribution often share networks and are represented as overlapping
14

domains [1]. In other way, to enable smart grid functionality, the actors can interact with
another actors, which are from different domains. In this way, there may not essential
to have similar characteristics and requirements for communications within the same domain. For instance, the ten Independent System Operators and Regional Transmission
Organizations (ISOs/RTOs) in North America have actors in both the Markets and operations domains. Similarly, the utility of distribution is not entirely contained within the
Distribution domain, in the Operation domain, it is expected to contain actors [7].

2.6

Applications

Applications are tasks performed by the actors within the domains. Some applications are
performed by a single actor, others by several actors working together. As examples are
application are smart meters, solar generators, and control systems represent of devices
and systems. . For instance, corresponding applications may be home automation, solar
energy generation and energy storage, and energy management [1].

2.7

Actors

Actor is a device, computer system, software program, or the individual or organization

that participates in the smart grid. Actors have the capability to make decisions and
to exchange information with other actors. Organization may have actors in more than
one domain. The actors illustrated here are representative examples but are by no means
all of the actors in the smart grid. Each actor may exist in several different varieties
and may actually contain other actors within them [1]. On the other hand, there might
be one more actor, which is called gateway actor if actor in one domain that interfaces
with actor in other domains or in other networks. Gateway actors may use a variety
of communication protocols. Therefore, it is possible that one gateway actor may use a
different communication protocol than another actor in the same domain, or use multiple
protocol simultaneously [7].

2.8

Interfaces

Interfaces represent the point of access between domains. Communication interfaces are
at each end of the communication associations and represent the access point for in15

formation to enter and exit a domain. Interfaces show either electrical connections or
communications connections. Each of these interfaces may be bi-directional. Communications interfaces represent an information exchange between two domains and the actors
within, they do not represent physical connections. They represent logical connections in
the smart grid information network interconnecting various domains [1].

2.9

Associations

Associations are logical connections between actors that establish bilateral relationships.
Actors interact with associated actors through interfaces. The electrical associations and
the communications associations between domains should draw in different ways [1].

2.10

Smart Meters

A Smart Meter is a device able to collect measurements of heterogeneous type, analyze

data and report readings in real-time. A smart meter electronically tracks how much electricity is used and when it is used, paving the way for time-of-use pricing and send this
information automatically to the Local Distribution Company (LDC). By automating the
meter-reading function, smart meter deliver a number of benefits [4]. Such as:

a. They support the implementation of time-of-use prices. By time-stamping consumption data, local distribution companies will be able to determine how much electricity was
used during off-peak times and how much was consumed during on-peak periods. This
capability allows homeowners to find electricity savings by shifting their electricity use.
b. They helps LDCs to identify power theft and respond to meter failures and outages
more quickly.
c. They provide greater operational efficiency in local distribution system management.

Smart meter also can provide power quality monitoring, remote customer services, dynamic service tarification. Such devices can be integrated in an Advanced Metering Infrastructure (AMI) [3]. The possibility of smart metering involves complex communication
technologies and may lead to relevant social, economical, and environmental benefits. The
smart meters should be connected to the home gateway that would integrate the home
16

automation network, which is communicated with appliances and devices, and devices
are able to exchange data with utilities. AMI can able to allows Distribution System
Operators (DSO) to optimize essential key processes and offer new services and data to
their customers, both on the supplier as well as the consumer side. There are many key
functionalities of AMI [5] as following:

1. Acquisition of all consumption data for electrical energy for tariff and special contract customers.
2. Remote control and load-switching possibility of customers load (if agreed in a service
contract).
3. Recording documentation of quality of supply (meter: voltage tolerances, short-term
failures, long-tern failures, power quality).
4.Creation of an open communications platform for the integration of multi-utility metering (gas, district heating, water) and additional services (Home Automation).
5.Recording of unauthorized power tapping and manipulations on the terminal devices
(such as meters)
6. Remote control of the transformer stations, Ring Main Unites (RMUs) and the complete distribution network infrastructure.
7. Single and three-phase meters for direct connection to low voltage network; Active
and reactive energy and power measurement (consumed and produced); Multi tariff and
capable of operating simultaneously with two-tariff structures; Load profiling; Maximum
demand registration; Power control management, with capability to remotely change maximum demand threshold and connect/disconnect supply; Demand management; Events
registration and alarms management; Anti-fraud detection; Quality of Service logging;
8. Local communication interface to enable communication to in-house equipment.

Regarding energy dispatch issues associated with AMI, a approach for distributed-optimal
power flow computation using smart meters, distributed generation facilities and remote
load control presented. Here the possibility for the utlities to reduce customers load with
remote signals, which is investigated. Although the customers is interacted with advanced
solid state, electronic meters that collect time-based data. In [5], there are many benefits of AMI when the installation of smart meters and advanced meter data management
17

systems as following:

a. Automated customers process (billing, change of tariff, data collection and so on).
b. Implement various tariff models and acquire data on supplied/imported reactive energy.
c. Record the capacity utilization of individual primary equipment like line sections and
transformers in order to optimize maintenance intervals, minimize line losses(example,
by moving open/break points), and obtain additional data for planning expansion of the
power network.
d. Minimize down times by acquiring and diagnosing errors.
e. Integrate small, decentralized energy generation plants into the distribution network
for billing and automation purposes.
f. Record and document the customer supply at the point of supply (in the meter) for
the purpose of providing evidence and for planning the power network.
g. Support disturbance management and clearing in the event of a fault in the network.

Furthermore, end-user privacy in smart meter measurements is a well-known challenge

in the smart grid. Information collection and dissemination using smart meters are critical to the smart grid. But information about electricity consumption that is collected
and harnessed for a more efficient and multi-faced grid may be used for purpose beyond
electricity consumption, and it makes potentially dangerous to individual privacy. Smart
meters are an indispensable enabler in the context of smart grids, which deploy advanced
information and communication technology to control the electrical grid. The main motivations for high-resolution energy usage data collection are to forecast load demand and
to provide optimized service to consumers in the form of pricing structure. An electricity
provider can use this information to facilitate more efficient network management, peak
load reduction, load shaping, and a number of other similar uses. However, it has been
known for some time that the information of appliances use can be reconstructed from the
overall real-time load using libraries of appliance load signature that could be matched to
signals found within the noise of a customers aggregated electricity use. The smart grid
interoperability panel has also underlined risk to privacy of personal behavior because
new types of energy use data are created and communicated by smart meters, such as
18

unique electric signatures for consumer electronics and appliances, thereby opening up
further opportunity for general invasion of privacy [1].

2.11

Demand/Response

In order to smooth the load factor during peak hours, shaping the demand is necessary to
greatly enhance efficiency in power networks and reduce operational costs. One enabling
technology for intelligent control from grid to houses is the Demand Response (DR) approach, in which the energy price is dynamic and customers can adjust the demand in
response to supply conditions. DR can represents as the changes in electric usage by
end-use customers from their required consumption schemes in response to changes in the
price of electricity over period. All intentional modifications for the system reliability of
payments are included by demand response program, which has consumption schemes of
electricity of end-use customers that are intended to modify the timing, level of transitory
demand, or the total electricity consumption. According to [5], the purposes of using
demand response for optimizing the balance of power generation and load are following:

a. Reduced energy costs,

b. Reduced loading of equipment,
c. Reduced investment for strengthening,
d. Increase of power quality,
e. Higher security of supply and
f. Increased system efficiency.

2.12

Smart Demand Response pattern for Customer Side Load

Management

The utility and the customer are collaborated parties for demand response system. The
utility can send signals to the customer to indicate a need or encourage reduction in
demand. The customer on the other hand, upon receiving this signal and other related
information such as the electricity rates, analyzes the condition and based on its own
management policy and the agreement with the utility decides on the appropriate action
to take. In such a collaborative pattern, both parties try to maximize their own savings
19

while making sure the other party gains an advantage. In this regards, to sending demand
reduction signals to the customer, the utility can encourage the customer to participate
by offering incentive such as bill credit, or direct payments. Similarly, the customer can
send signals to the utility indicating its willingness to participate in a mutually beneficial
plan, even if not called by the utility. The customer in the way can contribute in demand
reduction depends on the agreement with the utility. Various price based or incentive
based plans exist that can be used for this matter. For residential customers, applying
the demand response signal would require performing one of the several possible actions
such as turning off non-critical lights, and changing the thermostat set-points. The customers participation can be classified as either on/off services in which the load is shut
down completely (worst case), smooth reduction of consumption at its own discretion, or
shifting the loads from peak period to non-peak period [37].

The end-use customers would like to have total control over how the DR signal received
from the utility is acted upon. In other words, the customer needs to have a decision
module that decides whether to follow the recommendation by the utility or to refrain. It
will fail to comply when requested result in penalties enforced by the utility. Moreover,
many variety DR policies exist that the end-use customer can subscribe to. The nature
of these policies can be customized to answer the needs of various customers of different
types and with different sizes [39]. Nonetheless, the demand response module at the customers side is often designed to be able to respond to most elementary scheme described
below.

i. The utility sends a load shut down signal to the customer, requesting certain loads
to be disconnected from the network, and either be shut down or to be fed from the local
generation units of the customer. The agreement entitles the customer to the right to
accept or reject this request. However, while the former will result in credits/incentives,
the latter will lead to the customer paying penalties to the utility. Upon signing up for
this service, the utility needs to send the updated incentive/penalty terms of the contract
to the customer on a regular basis. This information will be used along with the local
load management policy by the customer to perform a cost-benefit analysis in order to
make a comply-refrain decision[39].
20

ii. This scheme is more common since the utility does not point to specific loads to
be disconnected from the network and it sends a request to the customer to reduce its
consumption by a certain amount. The agreement terms allow the customer to accept,
partially accept or reject the request. The decision process is more complicated under
this scheme. Since the customer is now responsible for finding the potential loads that
can be shut down. The requires of this scheme can look into all possible options and
running them against the local load management policy, finding the optimum solution
and sending an acknowledgement to the utility [39].

2.13

Energy Storage

One of the distinctive characteristics of the electric power sector is that the amount of
electricity that can be generated is relatively fixed over short periods of time and demand
for electricity fluctuates throughout the day. The technology, which can store electrical
energy and be available to meet demand whenever needed would represent a major breakthrough in electricity distribution. Electricity storage devices can manage the amount of
power required to supply electricity to the customers at times when need is greatest, which
is during peak load. These devices can contribute to make renewable energy, whose power
output cannot be controlled by grid operators. It can also balance microgrids to achieve
a good match between generation and load. Storage devices can provide frequency regulation to maintain the balance between the networks load and power generated, and they
can achieve a more reliable power supply for high tech industrial facilities. Hence, energy
storage and power electronics hold substantial promise for transforming the electric power
industry.

For achieving variety goals, energy storage devices can applied in distribution system
[5]:

1. Participation on the market for primary control power and energy,

2. Storage can act like generators of some ancillary services as load shifting, local voltage
control and primary frequency control,
3. Influencing the active power flow and voltage behavior in distribution networks to
21

minimize investments for strengthening the grid infrastructure,

4. Temporary islanding operation of island networks and industrial grids after disconnection from the utility network,
5. Improving reliability and security of supply, and
6. Reduction of temporary load peaks.

2.14

Dynamic Management System

Dynamic energy management is an inventive approach to managing load at the demand

side in the smart grid. It is a framework that brings together a repackaging of energy
efficiency, demand response, and distributed generation practices in a yields a higher and
more sustainable magnitude of improved efficiency , both at the customer site and for
the utility grid. It incorporate the conventional energy use management assumptions
represented in demand side management, and demand response and merges them in an
integrated framework that simultaneously addresses permanent energy savings, permanent demand reductions, and temporary peak load reductions. This is accomplished
through an integrated system comprising of smart end-use devices and distributed energy
resources with highly advanced controls and communications capabilities that enable dynamic management of the system [41].

There are many functions, which are necessary for the integral components (Smart EndUse Devices, Smart Distributed Energy Resources) of Dynamic Energy Management [41].
Such as:

1. Appliances, lighting, space conditioning, and industrial process equipment with the
highest energy efficiencies technically and economically feasible.
2. Thermal energy storage systems that allow for load shaping.
3. Intelligent end-use devices equipped with embedded features allowing for two-way communication and automated control.
4. Devices that represent an evolution from static devices to dynamic devices with advancements in distributed intelligence, one instance is a high efficiency, Internet Protocol
(IP) addressable appliance that can be controlled by externals signals from the utility,
22

end-user, or other authorized entity.

5. Devices that are dynamically controlled to supply base load, peak shaving, temporary
demand reductions, or power quality.
6. Devices that are also dynamically controlled that excess power is sold back to the grid.

2.15

Smart Appliances and Home Automation System

Changing individuals patterns of consumption is crucial to addressing the issue when

demand side management is essential in the smart grid. Smart appliances technologies
have data storage capabilities that can be remotely accessed through modern user interfaces. This affords the ability for data-driven decision making through visual analytic.
When given quantitative results, consumers tend to be more aware of their consumption
behavior. Smart appliances can be utilized to reduce individual energy usage through
incentives savings, while reducing customers energy emissions [6].

A variety of smart appliances are making energy metering viable to residential or industry
consumers. This creates potential energy savings and reduction in individual household
power consumption. This is an important step in empowering and engaging consumers
to consciously manage their consumption. The development process for smart appliances
can be conceptualized from the relationship of the requirements to the system as a whole.
The inputs are gathered from the smart appliances, while the process reflect the analysis
and optimization of energy usage. The outputs are then energy efficiency, waste reduction, and cost reductions. The system gives industry, commercial building, and home and
apartment owners the data necessary for them to make decisions based on their energy
usage habits. The enablers of the system include the smart appliance information guides
specific to each appliance and the Home Energy Rating System (HERS) index, which is
a measurement of energy consumption that allows users to compare their consumption
with local standards [6].

Cost optimization of smart appliances is a critical function in the smart grid. From
this perspective, European Union (EU) has set three major targets to be achieved in the
energy sector by 2020 [6]:
23

a. reducing gas emission by 20

b. increase in efficiency by 20
c. energy from Renewable Resources (RES) by 20

In order to achieve these targets, new policies and technologies are essential such as
smart grid. It is envisioned that most of the RES energy in EU will come from wind and
solar energy. Wind and solar farms operate in a different way to large scale generation
technologies. The production of electricity from these generators depends on resources
which are highly variable. By increase the share of RES in the generation mix, the operation of the power system becomes difficult or costly and the stability of the electricity
can be threatened. Measures to mitigate this risk include increase reserve capacities and
flexible demand side. In this view, demand side management can play an important role
in the smart grid initiative. It is expected that the suppliers can offer new tariffs such
as time-of-use tariff or real-time pricing (RTP) to its customers. In [6], major energy retailers from EU have identified the benefits of adopting new tariffs as RTP for residential
and commercial customers. These include:

1. a more competitive market during peak usage hours,

2. customers provide valuable reliability services to the local area,
3. reduce the frequency and magnitude of energy scarcity events,
4. avoid capacity requirements and
5. optimize the use of Renewable Resources (RES)

In [7], smart devices as a devices equipped with advanced control and communication
capabilities. Such device supposed to accept external signals, for instance RTP, user
settings and outside temperature and adjust their operation in response to the received
signals. A control method, that means Customer Energy Management System (CEMS) for
residential, commercial, and industrial customers that schedules the operation of smart
appliances is proposed. The CEMS controllers receives RTP tariff from the supplier
through the smart meter installed in the household. The CEMS controllers employs cost
optimization to maximize the savings on consumed energy by shifting domestic load.
24

The home communication system can be apply with diverse wired and wireless technologies in electrical power lines. In a similar manner, communication between the grid
and the DSM system should be handled by an appropriate interface [10]. The communication system for supporting smart appliances might be based on what is existed in the
house. The technologies that match this vision range from wired Power Line Communication (PLC) to diverse wireless technologies, such as Bloutooth. All technologies carry
pros and cons, and also have different costs. The PLC then seems to be the most interesting one. The reason of such preference is due tothe reliability and low electromagnetic
impact of a wired channel over a wireless one and these will handle together with data
safety, channel flexibility, and scalability. A universal appliances interface that enables
to design a controller with different type of interfaces for a wide range of common use
appliances. This approach could be adapted in developing appliance adaptors for home
energy management systems. A self-programming interface can be developed for Personal
Universal Controller (PUC), which offers to users a complete appliance interface in one
single device [10]. However, once the appliance is able to receive and send commands, the
PUC can integrate the appliance about available functions and generates an intuitive and
user-friendly interface. Since the interface is generated basing on the appliance structure,
the controller is completely universal. The hypothesis for this scenario is that appliance
description must be sufficiently detailed to allow the PUC to generate an adequate interface. An efficient approach is to define a set of state variables, commands, and labels
for each appliance and group them in a relation tree. The interesting information in this
pattern is mainly about the logic behind how to establish communication with appliances
and how to define an interface for sending and retrieving data.

2.16

Energy Efficiency

Energy efficiency means using less energy to produce the same amount of the useful
output. Energy efficiency can refers to the physical performance of specific end uses or
energy services. Greater energy efficiency might be achieved by replacing, upgrading, or
maintaining existing equipment to reduce the amount of energy needed. Efficient use of
electricity and changes in the electric power sector may play a vital role in any strategy
25

for achieving a more energy-efficient society. Generated electrical energy can not be effectively stored in bulk. It should be generated, distributed and consumed immediately.
But it is the main factor to decide economic development when DSM in smart grid is
essential. With the advancement of technology and indiscriminate use, the scarcity of
energy is prevailing in majority of nations in the world. Hence meeting energy needs has
become a major project globally. The energy demand in current world constantly increase
has become a notable feature of modern civilization for quite some time now [12]. The
gap between the demand and supply of electrical energy is continuously widening and
at some stage , is also alarming from social and economic angles. There might be three
solutions for this problem as following [12]:

a. increase in the generation capacity

b. reduction in the energy usage
c. energy conservation

One of the important subjects behind energy efficiency is about economic sense of it [15].
However, in large scale energy efficiency programmes, evaluations of costs are so crtical.
Although most economic evaluations of energy efficiency programmes can be focused on
related costs of the programmes and the result of energy saving. For this scenario, DSM
can be perfect technique, which can be successfully and efficiently implemented for end
user [14]. The benefits of DSM for energy efficiency are indicated below:

1. Minimize number of load shedding

2. Reduction in energy bills and earning of revenue
3. Smooth load shape
4. Reduces production cost
5. Reduces capital investment due to usage of more critical fuels
6. Increased energy availability and production
7. Reduced environmental degradation and pollution.

26

2.17

Smart Controlling System

In order to comprise energy efficiency for electrical devices in homes or commercial sectors, a smart grid-base Advanced Metering Infrastructure (AMI), and Customer Energy
Management System (CEMS)( both are applied in my proposed design), which checks
electricity consumption and controls the electric energy used with the demand response
technique. These are also necessary for remotely managing the load of the energy and
power consumed. The smart controller calculates the amount of electricity consumed by
customer on real-time basis from the utility supplier like electric supply company. The
smart controller can be used as the platform in smart grid system and it can sets up
outside of the electric appliances. The smart controller grasps the electricity amount
used in the electric appliance and diverse to the AMI/CEMS. The smart controlling system should have the network function to transfer information as the power sate or the
power consumption by controlling the electrical appliances [17]. The smart controller informs the power state or the amount of power used by the electric appliances to the CEMS

In addition, if the operations of equipment of DSM needs consumption-driven adjustment, an smart controlling system could be used [18]. Such a device is typically located
at the energy meter and monitors the consumption trend. If the trend points to unwanted
levels, the controller switches off equipment, based on certain priorities and other rules.
If consumers are added or removed, the stability depends on a wise choice of rules, configuring such an smart controller then can be a very critical task.

On the contrary, the demand side smart control is an issue that might have general
philosopy of demand side load management for adjusting energy demand or offer balance. According to this scope, the energy utilities developed different strategies for load
control. Such strategies need real-time access to information from utilities, digital based
intelligence inside houses, home or industry computerization communication network and
appliance, which can reduce power consumption [19]. These strategies are as following:

1. Local Control: It can consists in voluntary cooperation of customers to reduce load

peaks when taking into account variety energy tariffs depending on the period. Hence
27

customers with heavy and non-emergency power consuming activities are encouraged to
shift them in peak-off pricing time.
2. Direct Control: It might be based on appliances forced remote switching. The customer will allow the utilities to install in their homes some remote controlled switches
after received financial inducement, these switches would control the load when needed
by disconnecting selected appliances.
3. Decentralized Control: This is a merge approach relying on customers cooperation and
communication with utilities. The utility may have the opportunity to change energy
price in real-time as stated in the energy market and grid load status, while the customer
is called to adjust its consumption based his decisions with respect the tariffication.

28

3
3.1

A Proposed Conceptual Model

A Conceptual Model that defines the Domain included Applications and Actors

Smart Grid technologies are being developed in order to better operate the power system
and integrate larger amounts of renewable intermittent power sources and new energy
efficient electrical equipment. My proposed conceptual model is followed by such technologies, which is shown in Figure 3. Coordinating flexibilities in power supply and
demand plays a crucial role in this model. Interoperability between actors and applications is importance for the efficient and cost effective operation and adoption of smart
grid technologies. In this model, interoperability is most likely support the deployment
of such applications and relevant mechanisms for DSM. Interoperable in this model is
also a mechanism to leveraging power supply and demand flexibility. I have focused in
this model a high-level framework for the smart grid that mainly defines the distribution,
consumers, and service provider.

Although it has shown all the communications and energy flows connecting each domain
and how they are interrelated. The smart grid elements such as actors and applications
are connected to each other through two-way communication and energy paths. Each
individual domain of the smart grid aspects is comprehended itself. There are three users
such as User1 for house, user2 for industry, and user3 for commercial building, which are
controlled by Customer Energy Management System (CEMS). But in the behaviors of
the conceptual model, there is draw attention on one user and similar such behaviors in
the smart grid system might be handle for three users. The CEMS and smart meter are
interrelated to each other and smart meter always handled two-way communication with
Distribution Service Operator (DSO) and CEMS. DSO is also works as a service provider
and its connected between smart meter and smart grid transmission point. There should
be network connection systems ( wire-line or wireless) in this model to operate the smart
grid system for DSM. DSO exploit for monitoring control, protection of distribution mechanism in proper way, and communication of the measured values to improve observability
and controlability of the communication through smart meter. In other words, its also
29

Figure 3: A Proposed Conceptual Model for Demand Side Management and Smart Metering.
integrated with the utility management system. Customer Energy Management System
(CEMS) must be handle the functions of user and identified all information required from
utilities via DSO and smart meter. It also maintained optimize electricity usage, lower
electricity cost and consumers well-being.

3.2

The behaviors of the proposed Conceptual Model using Sequence Diagram

3.2.1

The behaviors which are requested initiatively from Distribution Service Operator

The behaviors for DSM in the smart grid are critical part, which might be make attention from the utilities. The service provider of the utilities must be know what kind of
behavior needs to apply for demand side management and it is also essential to realize
for the customers satisfaction. According to my view, variety types of behavior will be
30

Figure 4: Successful behavior of reduced consumption, which sketches communication

between DSO and User.
present, which are important for the optimal use of energy to control demand load and reduced cost of electricity for consumers. In Figure 4, Distribution Service Operator (DSO)
sends request to Customer Energy Management System (CEMS) through smart meter
for reduced consumption and CEMS sends request to User. In this case, time and unit
can be vary because different times and different units can be apply when demand side
management will be implemented in the smart grid. Hence, CEMS received the positive
response from User and CEMS sends this response to DSO via smart meter. Smart meter
must be analyze data before sending to DSO and CEMS.

Figure 5: Behavior of request of DSO, and its rejected from User.

31

The behavior of request of DSO is similar in Figure 5, which is also in Figure 4 but
the difference is that CEMS received rejection confirmation from User and CEMS sends
this confirmation to DSO using smart meter. DSO sends one more request to CEMS
through smart meter, which might be possible acceptance by User regarding time, unit,
and satisfaction cost of electricity. CEMS sends the requested signal to User and its also
provided partial mechanisms to control demand load and usage such request of consumption by User. Therefore, CEMS received the signal of rejection from User, and CEMS
sends this confirmation of rejection to DSO using smart meter.

Figure 6: How to handle successful behavior by DSO instead of rejection from User.

On the other hand, DSO sends request for reduced consumption regarding time, unit,
and cost of energy to CEMS and CEMS notified to User about requested order from
DSO, which is sketched in Figure 6. In this case, DSO received rejection signal but sometimes rejection from consumers is not the proper solution to control demand management
in the smart grid system. DSo then need to find out variety ways to satisfy consumers
and manipulated demand load. DSO sends another request for consumed electricity to
CEMS and User received this notification from CEMS. In all communication of behav32

iors, smart meter must be received all broadcasting signal from DSO and DSO must be
received all enlighten signal from smart meter. However, User is satisfied according to the
requested order of DSO. CEMS received confirmation of acceptance from User and sends
this confirmation to DSO. When analyzed behaviors of proposed conceptual model, I have
applied loop mechanism if DSO get rejection assert from CEMS. When apply the DSM
in the smart grid in real-time, loop mechanisms might be magnificent solution, because
the avoiding of rejection.
3.2.2

The behaviors which are requested initiatively from User

This is the substitute behavior in the proposed conceptual model, which is requested intuitively from User. User sends request to CEMS, and CEMS sends this request with price
clarified to DSO using Smart Meter. DSO sends confirmation of acceptance to CEMS
through Smart Meter, and User received it from CEMS, which is presented in Figure 7.
In this view, User need to have proactive realizing ability to reduced energy consumption
and cost, which will provide benefits for User and DSO, and DSO might get contingency
from this mechanism to control demand load.

Figure 7: Successful behavior for reduced consumption, which is requested from User.

There is another behavior in the conceptual model, which is invented the request from
User in Figure 8. In this perspective, DSO is not gratified regarding request of User. User
received confirmation of rejection from CEMS, which is sends from DSO. User sends one
more request with diversity energy consumption and price to CEMS, and CEMS notified
33

to DSO through Smart Meter. Therefore, DSO is not also fascinated conforming to the
request of User, and CEMS received the rejection signal from DSO and CEMS sends it
to User. DSO might be rejected this request to maintain the balance of energy demand,
and DSO always connected with utilities. Consequently, sometimes DSO can not allowed
to reduce the consumption and cost of electricity for the benefits of utilities.

Figure 8: Behavior of rejection for reduced consumption, which is requested from User.

Although in the proposed conceptual model, there is additional successful convention,

which is also requisitioned from User in Figure 9. This convention is almost similar that
is presented in Figure 8. But the distinction is that, when User received rejection signal from CEMS, which is sends by DSO, then User sends new request with alteration
consumption and price of electricity. DSO sends the confirmation of acceptance using
Smart Meter to CEMS, and User received it from CEMS. According to this illustration,
DSO can reduced consumption and cost of energy, and it will draw huge asset to control
demand load. In other sense, User can cut down the cost of electricity.

34

Figure 9: Behavior of acceptance instead of rejection from DSO.

35

4
4.1

A Proposed Alternative Actor Model

A Alternative Actor Model, which controlled DSM in the
Smart Grid from Utility Site

A alternative actor model for DSM in the smart grid can provide effective mechanisms to
distribute energy, and energy load control, which is sketched in Figure 10. Smart Meter
in this model have ability to transmit the collected data through the Data Transmission
Network to the Meter Data Management system (MDMS). MDMS is the function performs different kinds of readings, storing and analysis of smart metering data. The smart
meter data are received by the Advanced Metering Infrastructure-Host (AMI-H) system
and sent to the MDMS that manages data storage and analysis to provide the information
in useful form to the utility. AMI in this actor model enables two-way communications.
Hence, communication from the utility to the smart meter could also take place. The
smart meter of actor model is applied for the users of resident, commercial, and industry
and its integrated with variety types of appliances. The smart meter also act as a authority to collect data from the customers.

Figure 10: A Proposed Alternative Actor Model for Demand Side Management and Smart
Metering.

The functions of AMI-H or AMI are comprised of state of the art digital communication systems, which can combine interval data measurement with continuously available
remote communications and AMI-H is enabled to measurement of detailed, time-based in36

formation and frequent collection and transmission of such information to the utility and
smart meter. Although AMI in this model may typically refers to the full measurements
and collection system that includes smart meter at the customers site, communication
networks between the customers and MDMS. AMI system is a core infra system for the
smart grid system, and is a main mechanism for the realization of DR based on the bidirectional communication between demand and supply. AMI system is also an intelligent
infra system having a high priority for operation of the smart grid such as information interaction with intelligent MDMS for control energy load. AMI and MDMS are integrated
efficiently with reduction in smart meter reads and associated management and administrative support to handle DSM system in effective way. In addition, AMI is unified with
DTN and MDMS to increased smart meter reading accuracy, improved utility asset management, easily energy theft detection, and smoothly energy outage management, which
may partially helpful for DSM. On the other hand, AMI and MDMS might provide some
mechanisms, which can employ for early detection of smart meter failures, billing accuracy
updates, a variety of time-based rate options to customers, and creating customer energy
profiles for targeting energy efficiency and demand response programs. But I will mainly
focused in the following sections on the variety behaviors that are essential to controlled
DSM.

4.2

The behaviors of the proposed Alternative Actor Model using Sequence Diagram

4.2.1

The behaviors based on per hour price of electricity

The behaviors of alternative actor model are bit different compare to behaviors of conceptual model. In this case, all behaviors are initiated from the utility site to controlled
demand load in the smart grid. MDMS sends a offer to smart meter for based on per hour
price of electricity for a period using AMI-H and smart meter received it from DTN, which
is sketched in Figure 11. Smart meter always integrated with variety appliances that has
shown in Figure 10. However, smart meter replied acceptance signal to MDMS through
DTN, and AMI-H and MDMS received it from AMI-H. This offer might be intelligent
offer for DSM and such kind of offer can change after a period. Utility can have ability
to provide variety offers for variety periods, and it will be easy to control DSM.
37

Figure 11: Behavior of acceptance based on per hour price of electricity.

In other case, MDMS sends the same offer to smart meter using same system in Figure 12 but MDMS received rejection notification from AMI-H, which is sent from smart
meter. MDMS then sends another offer with reduced price of electricity for the same
period. In that way, smart meter is not also satisfied according to that offer. Therefore,
smart meter rejected it, and sends it to AMI-H using DTN and MDMS received confirmation of rejection from AMI-H, which is received by AMI-H from smart meter through
DTN.

Figure 12: Behavior of rejection based on per hour price of electricity.

On the contrary, MDMS sends the same offer and received rejected signal again, and
38

MDMS sends the one more similar offer to smart meter, which is illustrated in Figure
13. But in this way, smart meter accept the offered, and sends the confirmation of acceptance to AMI-H and MDMS received it from AMI-H. The mechanisms of MDMS are
applied in the intelligent way to get acceptance by smart meter and these mechanisms
are more effective to reduced consumption. Utility company can have ability to increased
the price of electricity during consumption of energy of peak-hours, and decreased the
price of electricity during non-peak-hours. Customers might not be interested to consume
more energy during peak-hours, because the price of electricity is increased and these
mechanisms are most likely great advantages to controlled DSM in the smart grid.

Figure 13: Behavior of acceptance after rejected based on per hour price of electricity.

4.2.2

The behaviors of load shedding for a period

The behaviors of load shedding for a period of the alternative actor model are significant
to manipulated DSM in the smart grid. According to my analyzed, the variety offers of
load shedding should provide in a specific period, when consumers needs less electricity.
In Figure 14, MDMS sends a offer to smart meter for load shedding for a period and
smart meter accepted it, and sends the confirmation of acceptance to AMI-H and MDMS
39

received it from AMI-H. In other words, if users is consumed unnecessary energy and
smart meter achieved a sense about it, smart meter then send a request for load shedding
but such mechanism is not illustrated in Figure 14.

Figure 14: Successful behavior of acceptance for offer of load shedding.

In Figure 15, there is a similar offer as presented in Figure 14 but the different is that
smart meter rejected the offer. When MDMS accept rejected notification, MDMS then
sends another offer of load shedding for another period. In this period, user need to consume electricity, and regarding the view of user, smart meter again sends the confirmation
of rejection through DTN to AMI-H and MDMS received it from AMI-H.

Figure 15: Behavior of rejection for offer of load shedding.

40

In addition, there is one more offer of load shedding from MDMS to smart meter, and
smart meter is not gratified regarding this offer that is configured in Figure 16. Smart
meter sends the notification of rejection to AMI-H, and AMI-H sends it to MDMS. Sometimes successful behaviors are vital for utility site to control DSM. MDMS sends another
persuade offer of load shedding for another period to smart meter, and smart meter accept
it and sends the confirmation of acceptance to AMI-H using DTN, and AMI-H sends it to
MDMS. Hence, the behaviors of load shedding are crucial to reduced consumption, and
reduction of cost of energy for customers.

Figure 16: Behavior of acceptance after rejected for offer of load shedding.

4.2.3

Pros and Cons of Alternative Actor Model

Pros and cons should draw from the contentment (comfort) and discontentment of the
customers and the utilities. The mechanism of the alternative actor model are completely
different compared to the mechanisms of the conceptual model to handle DSM in the
smart grid. The actors and applications are also assorted except smart meter compared
to the actors and applications of the conceptual model. There are variety pros of the
alternative actor model. such as:
41

1. It can reduced energy consumption by offer based on per hour price of electricity.
This strategy is more effective if utility company increased the price of electricity for a
specific period when demand load is high, customers then might not be consumed more
electricity. Although customers are concerned to used their opportunity to deduct the
costs of electricity.
2. The functions of this model are employed not only to reduced consumption but also
to shift the load level.
3. This model have ability to controlled DSM centrally (from utility site).
4.It have ability to increased energy independence, and reduced excessive dependence.
5. It can provide reliable of service to customers and to promote new economic growth
for utility company and customers as well.
6. The mechanisms of load shedding in this model are formed in efficient way to reduced
unnecessary consumption, to maintained users electricity costs, and utility can get opportunity to served more energy for other users.
7. Reliable communication systems facility.
8. Distribution smart grid management

On the contrary, there are also various cons of the alternative actor model as following:

1. If customers re-sends rejection signal for the offer based on per hour price of electricity, MDMS can not controlled DSM, and it might be complicated for utility company
to distribute energy for other customers.
2. Load shedding mechanism may annoyed for customers when they need to consumed
energy for emergency task.
3. Centralized management of alternative actor model from utility site might not be able
to distribute required electricity for large number of customers.
4. In the communication systems of this model, if DTN is failure to transmit data to
smart meter, there is no mechanism to re-transmit data.
5. There is lack of standardization of smart meter upgradeability.
6. Shortage functions of automates maintenance and operation.
42

7. There are inadequacy mechanisms for choice of consumers.

8. There is insufficiency of dynamic optimization of smart grid operations and resources.

43

An Overview of Ongoing Plans and Experiments

with Demand Side Management and Smart Metering

The experiments with DSM in the smart grid has already done in some countries in the
world, and ongoing plans of the DSM and smart metering are also continuing on research
fields. Many exciting innovations are being developed to make end users more aware of
the attributes of their energy consumption. With this information, they can make more
informed decisions to balance their lifestyle and business requirements as consumers of
the grid, in effect becoming educated energy users with a wealth of new smart home or
industry devices to help them. In [22], The implementation of the Xcel energy substation
is a substation automation system illustrated Xcel energys desire to implement state-ofthe-art monitoring and control equipment for DSM in the grid. Many of their existing
protection and control systems are based on electro-mechanical systems, which is lack of
computing, sufficient memory, and communications capabilities required to be smart to
handle DSM in the smart grid. This implementation actually expands on the capability of
a network of intelligent electronic devices communicating among one another to include
two substations and several distribution feeder circuits. Thus, the smart technologies
demonstrate a small, coordinated service territory to show the power of this technology
across en entire utility. Each system provides much more than typical substation systems
that simply indicate the present state and allow remote control. This demonstration also
shows to distribute energy according to demand from customers, restore the power systems faster after outages, and increase energy system reliability.

Although there are variety experiments in various countries in the world. Such as:

i. According to analyst [29], the installation base of smart meter to handle DSM in
Europe at the end of 2008 was about 39 million units. Nordic countries became the critical state for DSM in the smart grid from 2003. Developments of smart grid in Denmark
took off in 2004 with variety ambitions projects being announced by the countrys largest
utilities. At that time, Norway has taken a more cautious stance but after few years,
44

Norwegian Energy Authority declared that it would recommend new legislation, which
might required smart meter to take effect in future. Nowadays, some energy companies
and research institutes in Norway has been starting research and experiments on DSM
in the smart grid. I will discussed more on it. Although Sweden had signed contract for
AMI solutions, which need to interact with distribution service management to handle
DSM in the smart grid.
ii. The worlds largest smart meter deployment is initiated to experiments for DSM by
Enel SpA, which is the largest utility in Italy [28]. This utility deployed smart meters to
its entire customer base. These smart meters are integrated bi-directional communications, advanced power measurement and management capabilities for DSM, and its also
integrated software controllable disconnect switch.
iii. The utility company Oxxio in Netherlands have been researching and experimenting
on smart meter to controlled DSM and utility concerned to maintain required privacy of
the consumers [28].
iv. The Department of Energy and Climate Change in United Kingdom (UK) had announced to intention to have smart meter, and its must be usages in the smart grid and
handle DSM when distributing energy to customers by 2020 [28]. But at the end of 2013,
there were 295,700 smart meters installed in domestic properties in UK. They overlooked
the potential costs and benefits of rolling out smart meters to suppliers, network operators, and customers.
v. Notwithstanding, there is an experiments in France for applying DSM in the smart
grid using smart meter, which is being conducted by Electricit Rseau Distribution France
(ERDF) [28]. The experimentation phase started in March 2010 and ongoing. From this
experiments, there will determination to increased interaction between actors and applications to controlled DSM.
vi. The Green party Minister for Communications, Energy and Natural Resources in
Ireland have started experiments and ongoing experiments on smart meter to used in
the smart grid and used DSM mechanisms to controlled balance of fluctuating electricity
demand [28].
vii. An experiments in United State (US) on DSM in the smart grid, and it allows to
provide timing and pricing options to customers for upload to the grid. The customers
of the residential, commercial, and industrial may tailor their daily energy consumption
45

to the service provider using smart meter. Thus creating potential for reducing monthly
energy bill in [28].
viii. The regulatory framework for implementation is developed by 2012 and ongoing
research on that by the Ontario Energy Board in Canada [28] and it shows that a set of
target of deploying smart meters used to large number of users of homes and industries.
ix. In [28], there is a plan to be installed smart meter for all small businesses and residences in Australia, and this plan was completed in 2013 and continuing on this.
x. Utilities have started to test metering using smart meter with integrated communication devices to promotes energy efficiency by the Energy Conservation Center in Japan
[30].
xi. The process of implementing smart meter, which is critical to controlled DSM in the
smart grid for all private and commercial households in Malta by International Business
Machine (IBM). It has completed by 2012 and new experiments are ongoing [28].

For several years, electric utilities have been turning to smart grid technologies to help
deal with some pressures, which are critical for DSM and smart metering. From [23], there
is an experiments for DSM and such pressures are focused on this experiments as following:

1. Delivery Optimization: It consists of the efforts by the electric utility to improve

the efficiency and reliability of the delivery systems.
2. Demand Optimization: It focused on solutions to empower the end consumer and to
better manage the evolving demand and supply equation along the distribution feeder
3. Asset Optimization: It is the application of monitoring and diagnostic technologies
to help manage the health, extend the useful life and to reduce the risk of catastrophic
failure of electrical infrastructure.

The Norwegian Smartgrid Centre have been starting research, and experiments on DSM
and smart metering and its collaborated with 26 industrial and research organization
partners to achieved these targets in Norway [21]. Real-time simulation and adaptable
home energy management system in the smart grid, which need to apply DSM and smart
metering that are ongoing research and experiment in the smart grid laboratory at the
Norwegian University of Science and Technology (NTNU).
46

6
6.1

Results and Discussion

Evaluation and Discussion

DSM is a strategic level and long term demand management methodology enabling utilities to controlled demand and maximize system utilization for the smart grid. DR might
be suitable for short term emergency cases of demand control where the smart grid is near
its capacity or electricity prices are high. According to the results shown in the behaviors
of the conceptual model and alternative actor model that have ability to reduced peak
loads or reduced demand. When designing these models to controlled DSM in the smart
grid, a lot of scientific research papers, data sets and surveys need to be collected to
ensure appropriate program control options, strategies, and flexibility suiting technical,
economic, and societal needs of the residential, commercial, and industrial consumers.
Due to the consumed or demand energy based on hourly or daily, and different request
techniques depending on the various necessities of the consumers , I need to come up
with several assumptions to applied the behaviors to control DSM. However, with the
continuously growing awareness about the necessity of upgrading the current power grid
infrastructure and moving towards a smart grid environment and I have aimed to provide
possible solution using variety behaviors to maintained DSM in the smart grid.

For the conceptual model to controlled DSM, only one DSO is used to distribute energy to the users of house, industry, and commercial building but they might need three
DSO for the different users or DSO may need based on region when implementing DSM
system in the smart grid. During designed of conceptual model, it is important to more
focused to be selected applications and actors that need to integrated to each others to
maintained DSM and smart metering. There are six behaviors of the conceptual model,
three behaviors are requested initiatively from DSO, and another three behaviors are
requested initiatively from user. DSO is concerned that reduced energy consumption is
necessary during peak time, and CEMS get requested signal through smart meter from
DSO to reduced consumption for a specific period and this period might be peak period. In this case, DSO got two times acceptance signal and one time rejection signal but
DSO got acceptance signal at second time after rejected. When DSO get rejected signal
47

from CEMS, DSO then applied different strategies to received acceptance by CEMS to
maintained DSM. These behaviors might be useful in effective way to controlled DSM
in the smart grid. Another three behaviors are requested from user for required consumption. Two of these requests are accepted and one of these requests is rejected by
DSO. User get second acceptance signal from DSO after rejected, DSO applied efficient
strategy to get request in different ways from user, which may have competent to controlled DSM. In this view, user realized that consumption have been increasing and its
need to be decreased. Thus DSM can be controlled using the strategies of these behaviors.

For the alternative actor model, which is designed to controlled DSM with smart metering from utility site in the smart grid. The actors and applications in the alternative
actor model were completely different except smart meter compare to the actors and applications in the conceptual model. Its need much more attentions to be selected the
actors and applications. There is also another exceptional domain called communication
network domain to transmit data between the customer domain and utility domain. There
are requested six behaviors from utility site and customer does not act to send any request
initiatively to the utility site. To controlled DSM, there are three behaviors from MDMS
based on per hour price of electricity for a specific period, and MDMS applied variety
strategy when its get the confirmation of rejection and after reduced price for requested
offer, smart meter then received the offered. When price of energy is high during peak
hours, customers might be alert to reduced their consumption, and its also assistive to
reduced their electricity bill. The technique of these behaviors is predicate to demoted
energy consumption. Although there are three more behaviors based on load shedding
for a specific period and two of these behaviors are successful and one of these behavior is
unsuccessful. The strategy of a behavior is changed after received rejected confirmation
from smart meter, because smart meter is not satisfied by users, and users does not accept the load shedding offered and the appliances of users needs energy consumption. The
request for another period is accepted by smart meter. This strategy of these behaviors
might be more operative to decreased consumption and controlled DSM in the smart grid.

There are many pros and cons of the alternative actor model, cons of this model are
also important to identify weakness, these error are affected to maintained DSM in ef48

ficient way, and these points should not be avoided when intend to design a alternative
actor model to controlled DSM with smart metering. The experiments and research for
DSM and smart metering in the smart grid have done in the variety research institutions
and energy industries in many countries in the world. An ongoing plans and experiments for DSM and smart metering are also vital to developed the mechanisms of DSM,
and how the customers and utilities can get more benefits using DSM and smart metering.

Hence, according to my analyzed to designed such proposed models and produced behaviors for these models, it seems like most important prerequisites for DSM are achieved, the
energy market and regulation is adapted to hourly reading of the smart meter, that allow
hourly and remote reading of the consumption. The electricity cost is pointed out as vital
to controlled DSM, the cost of electricity is considered relatively low, and it appeared to
be a promising approach for customers to reduced consumption.

49

7
7.1

Conclusion and Future Work

Conclusion

This research strives to established a framework for DSM and smart metering from the
point of view of the customer side and the utility side in the smart grid. The proposed
conceptual model and proposed alternative actor model are designed to controlled DSM
in the smart grid that provided the variety behaviors for reduction energy consumption,
and these behaviors are monitored and controlled using different actors and applications.
The applications and actors in two proposed different models are integrated in variety
ways, and the mechanisms of these models are also applied in different ways to reduced
consumption and deducted the costs from customers bill. The framework of the conceptual model and the alternative actor model is suitable for a dynamic environment such
as the DSM and DR, and can have ability to used at different level of the smart grid.
The present investigation addressed and proposed solutions for some aspects of DSM, but
does not solve others issues as like energy pricing for the benefits of the utility, large-scale
optimization, load forecasting, communication technologies, and smart building integration within micro grids.

In research of this thesis, an ideal scenario for DSM program enthusiastically engaged
end-users who are more concerned and curious about their energy consumption patterns.
Smart appliances and metering systems based on advanced energy efficient technologies
which enabled consumers to be continuously updated about their electricity consumption
while providing efficient electricity usage tips and optimized transmission, and distribution and control networks that provide easily accessible analytics to the customers of the
utility. Although alternative actor respond intelligently when distributed energy to the
needs of local consumers within its proximity. Even if the DSM is only one feature, it is
an enabling technology for many components of the smart grid. Efficient DSM can enable
a high penetration of energy sources such as solar and wind power, and the integration of
smart residential, smart commercial, and smart industrial buildings with local distribution in the smart grid. It can also give the means of effective electricity dynamic pricing
and liberalization of energy markets, where the customers can be encouraged to consume
50

less and be more efficient as to minimize their energy expenses. Hence, from the analyzed
overview based on ongoing plans and experiments with DSM and smart metering, it can
summarized that my proposed solutions are more effective to controlled DSM in the smart
grid.

7.2

Future Work

One can think about another realm of possible developments in terms of energy consumption, and how to reduced consumption to controlled DSM and smart metering. In fact,
energy demand is constantly increasing and DSM is a critical program to controlled energy demand and reduced consumption. Implementation of the DSM and smart metering
is crucial part in near real-time. Thus, I want to work on implementation for the DSM
and smart metering in the smart grid and this implementation will also draw attention
on security for the smart grid information system.

51

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