Energy Management System for Smart Grid Consumers with Advanced Usage Information

This paper presents an online energy management system based on a virtual energy provisioning (VEP) concept. VEP is a novel demand side management inspired by the lean supply chain technology. It aims to control the process of energy generation, delivery, and consumption under the mechanism called “order-then-production” principle. This means electricity should be ordered by end consumers in advance before actually produced and delivered. The utility company, after aggregating consumers’ advance demand information, can decide an optimal generation and distribution scheme to meet the actual need. In this paper, the VEP principle and its impacts on smart grid systems will be discussed.