A two-step approach to energy management in smart micro-grids aimed at improving social welfare levels and the demand side management effect

Demand-side management is one of the ways to create interaction between the microgrid and increase consumer participation in management schemes. Different algorithms and strategies have been used to execute consumption management programs that often covering a limited number of loads in several specific types. In this paper, first, the load shift method as an optimization problem to reduce system demand peak and subscriber bills for various loads in smart microgrid is solved by (H-PSO-SCAC) algorithm, then the effect of the proposed program on the generation and presence of microgrid in market for improving the level of social welfare is aimed. The results are performed on a smart grid consisting of three Residential, commercial and industrial microgrids that including different types of controllable loads. The results show that the proposed program can reduce peak load, reduce subscriber bills, save production costs, help balance supply and demand, and improve the level of social welfare from the perspective of the distribution system operator.