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Multiobjective Optimization for Demand Side Management in Smart Grid

Li, Dan; Sun, Hongjian; Chiu, Wei-Yu; Poor, Vincent

Multiobjective Optimization for Demand Side Management in Smart Grid Thumbnail


Dan Li

Wei-Yu Chiu

Vincent Poor


Demand side management (DSM) plays an important role in smart grid. In this paper, a hierarchical day-ahead DSM model is proposed, where renewable energy sources (RESs) are integrated. The proposed model consists of three layers: the utility in the upper layer, the demand response (DR) aggregator in the middle layer, and customers in the lower layer. The utility seeks to minimize the operation cost and give part of the revenue to the DR aggregator as a bonus. The DR aggregator acts as an intermediary, receiving bonus from the utility and giving compensation to customers for modifying their energy usage pattern. The aim of the DR aggregator is maximizing its net benefit. Customers desire to maximize their social welfare, i.e., the received compensation minus the dissatisfactory level. To achieve these objectives, a multiobjective problem is formulated. An artificial immune algorithm is used to solve this problem, leading to a Pareto optimal set. Using a selection criterion, a Pareto optimal solution can be selected, which does not favor any particular participant to ensure the overall fairness. Simulation results confirm the feasibility of the proposed method: the utility can reduce the operation cost and the power peak to average ratio; the DR aggregator can make a profit for providing DSM services; and customers can reduce their bill.


Li, D., Sun, H., Chiu, W., & Poor, V. (2018). Multiobjective Optimization for Demand Side Management in Smart Grid. IEEE Transactions on Industrial Informatics, 14(4), 1482-1490.

Journal Article Type Article
Acceptance Date Oct 23, 2017
Online Publication Date Dec 11, 2017
Publication Date Apr 1, 2018
Deposit Date Nov 17, 2017
Publicly Available Date Jan 12, 2018
Journal IEEE Transactions on Industrial Informatics
Print ISSN 1551-3203
Electronic ISSN 1941-0050
Publisher Institute of Electrical and Electronics Engineers
Peer Reviewed Peer Reviewed
Volume 14
Issue 4
Pages 1482-1490


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Advance online version This work is licensed under a Creative Commons Attribution 3.0 License. For more information, see

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