Proceedings of 2018 Conference on Emerging Trends and Innovations in Engineering and Technological Research (ICETIETR)

Demand Side Management in Microgrids

Krishna Gilda
Electrical
Engineering Department, Col-
lege of Engineering, Pune Pune,
India
krishnagilda23@gmail.com
Mrs. S. N. Chaphekar
Electrical
Engineering Department,
College of Engineering, Pune
Pune, India
shalakachapekar@yahoo.co.in
Prof. Dr. Mrs. A. A.Dharme
IEEE Member
Electrical
Engineering Department, Col-
lege of Engineering, Pune
Pune, India
dharme@rediffmail.com
Prof. Dr. D. B. Talange
IEEE Member
Electrical Engineering De-
partment,
College of Engineering, Pune
Pune, India
dbt.elec@coep.ac.in

Abstract—India is a developing nation with growing energy
demand. With the limitations in monetary resources, in-
creasing the generation capacity should not be the only
way to achieve this target. Demand Side Management
(DSM) is one such viable solution to this problem. Man-
agement of power from the demand side is DSM. The re-
cent trend to use distributed generation like Solar Photo-
voltaics and Wind turbines has led to increasing usage of
Microgrids nowadays. DSM can be applied to such Mi-
crogrids for their better and optimal performance and
thus manage power to reduce investment. The applica-
tions of different objectives of DSM to microgrid are dis-
cussed in this paper. One such microgrid is taken as a case
study. Application of DSM to this case study is discussed.
The techno-economic analysis of the proposed case study is
verified with the load flow analysis employing Newton
Trust Region Method and DSM indices.
Keywords—Demand Side Management; Microgrid; Power
Flow Analysis; Newton Trust Region Method.
I. INTRODUCTION
India is a developing nation. The capacity of the installed
grid is 329.20 GW as on 30th April, 2017 [1]. India has
faced a power deficit of around 3 - 9 % in last five years
[2]. The power demand has grown around 4 % last year
[2]. This has resulted in huge investment in power sector.
Currently 31.16 % of total population of India lives in ur-
ban areas [3]. With more people migrating from rural to
urban areas, the power demand of urban areas and thereby
of the country has significantly increased.
In India 63% power generation is through coal fired ther-
mal power plants. This type of power generation has a di-
rect impact on environment. More generation will lead to
increased carbon footprint. India has promised to reduce its
emission intensity by 30-33 % by 2030[4]. Addition of
generation capacity cannot be the only solution to satisfy
this demand.
of fossil fuels and environmental problems caused with the
burning of fossil fuels have led to the development of gener
ating power domestically at distribution voltage level using
non-conventional energy sources and their integration with
the distribution network. This type of power generation is
referred as Distributed Generation [5]. The generators used
for distributed generation are called as ‘Distributed
Genertors’ (DGs). There is a major transition from passive
and stable distribution network to active distribution neworks
with bidirectional flow of electricity. The present ‘fit and
forget’ strategy of DG deployment needs to be changed in
active network management. It should incorporate integrtion
of Microgrid with DSM in distribution network [6].
Microgrid is essentially an active distribution network be
cause it is a conglomerate of DG system and different loads
at distribution voltage level [5]. They are located close to
load centres. The generators employed in a microgrid are
usually Renewable/Non-Conventional Distributed Energy
Resources (DERs). Thus, Microgrids present a supply sys
tem that feed local loads relieving the utility. Complemen-
tary use of DERs and DSM can reduce the peaks and valleys
in the present load curve. This will result into reduction in
electricity deficit and tariff [7].
College of Engineering, Pune (CoEP) is an autonomous en-
gineering institute of Government of Maharashtra India. The
hostel campus is located in close proximity of the institute
campus in densely populated area. The hostel campus is
treated as a microgrid and is taken as a case study. This pa-
per investigates the application of some DSM techniques in
a microgrid. Section II describes the objectives of DSM
techniques and discusses types of the DGs used in mi-
crogrid. In section III the implementation of DSM tech-
niques to a microgrid under study is discussed. Section IV
discusses the techno-economic analysis of the proposed Mi-
crogrid system. Section V gives the conclusions.
II. DEMAND SIDE MANAGEMENT IN MICROGRIDS

The unevenness of the Indian load curve has resulted in
huge investment in power generation. This results in poor
plant use factor and hence increased per unit cost of elec-
tricity. One of the solutions to solve this issue is to manage
the power demand. Managing the power demand or de-
mand-supply balance from load side is ‘Demand Side Man-
agement’(DSM).In recent times the obstacle of depletion
With the increasing penetration of renewable energy sources
in the grid like solar photovoltaic and wind energy, there is a
decline in the controllability of generation. DSM can be a
good solution to gain control of loads with respect to the
generation [8].
A microgrid is an autonomous group of controllable plug
and play micro sources and energy storage devices that are

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 Proceedings of 2018 Conference on Emerging Trends and Innovations in Engineering and Technological Research (ICETIETR)
optimally placed and operated for the benefits of customer.
Microgrids are operated in two modes viz. Grid-connected
and standalone mode. In grid-connected mode, microgrid
either imports or exports electricity with grid. In
standalone mode of operation, all loads are supplied by the
DGs of microgrid. Proliferation of renewable sources has
strengthened the need of application of DSM techniques in
Microgrid.
DSM can be defined as modifications in the energy con-
sumption pattern to foster better efficiency and operations
in electrical energy systems [9].It reduces the investment
in transmission and distribution system of utility through
erection of Microgrid. Active load control is discussed in
[10]; this technique helps in flattening the load curve
which is the main objective of DSM.
The control and adaptability of a microgrid allows it to
represent as a single controlled unit that meets local energy
needs for reliability and security. Power generated at dis-
tribution voltage can be directly fed to the grid during ex-
cess power generation and power can be drawn from grid
during deficit within the microgrid. These aspects of mi-
crogrid facilitate the application DSM in microgrid.
There are several DSM objectives and algorithms that can
be applied in order to reduce the peak load demand and
operational cost. These strategies should be able to deal
with the large number of a variety of controllable loads
with all possible control durations.
A. DSM Objectives
There are two types of DSM strategies
 Shifting of loads to off-peak hours
 Energy efficiency programs
Fig. 1 shows an illustration of various DSM techniques.
‘a’ is load independent/fixed cost.
Fig. 1. DSM Techniques [11]
The main objective of DSM is to maximize the economic
benefits and reduce the peak load demand of the consum-
ers as well as of the grid. DSM is a win-win situation to
both, the utility and the consumers.
Technical feasibility of the system is verified using load
flow analysis. Economic viability is checked using DSM
Quality Index (DSMQI) and DSM Appreciation Index
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(DSMAI) as discussed in [7].
Microgrid is under study has two generators and variable
load. The DGs used is a combination of renewable and
conventional generator.
B. Types of DGs
1) Solar Photovoltaic
Solar photovoltaic power is a generic term used for electri-
cal power that is generated from sunlight. The base of the
solar photovoltaic power is the solar cell or photovoltaic
cell. Fig. 2 shows maximum power generated at a point.
When the PV cell works at the maximum power point, it
operates at best efficiency. These curves are generally pro-
vided by the manufacturer.
Apart from Solar PV system for generation, solar thermal
system is useful in achieving the objective of DSM viz.
peak clipping.
Fig. 2. Voltage and Current Characteristic of a Solar Cell [12]
2) Diesel Generator
Generators have several kinds of supply curves, e.g. linear
or quadratic functions. All these curves are provided by the
manufacturer. Many electric utilities prefer to represent their
generator offer price as a single segment or multiple-
segment linear cost function [13]. The offer price for each
generator can be represented by a quadratic function, while
the start-up and no-load costs are spread over the running pe-
riod. The generator offer price is taken as the sum of the op-
eration cost of the generating set at no-load and the cost for
producing the output of the generating set. The formulation
is given as follows:
C (P) = a + b*P + c*P2 ( 1 )
Where ‘a’, ‘b’ and ‘c’ are constants with ‘P’ as power [13].
III. APPLICATION OF DSM FOR MICROGRID- A CASE STUDY
The hostel of CoEP located at coordinated 18°31'41.0"N
73°51'06.1"E is taken as a case study for the application of
DSM techniques. The hostel has a capacity of 1500 students.
The campus area of the hostel is 38650 m2. The maximum
demand of CoEP Hostel is 220 kVA with a sanctioned load
of 600 kVA from the utility. Two diesel generators and solar
PV system are used in the microgrid under study. The load
distribution per the type of load is given in Fig. 3.
2
 Proceedings of 2018 Conference on Emerging Trends and Innovations in Engineering and Technological Research (ICETIETR)

5) Hot Water for Cooking

Load Distribution Hot water requirement of mess can be fulfilled by installa-
tion of solar thermal system. It will lead to saving of
around22 kWh per day.
12% Lighting Load
Fan load Wa- TABLE I. ENERGY CONSERVATION OPPORTUNITIES
9% 35%
ter Pump Wa- Sr. Present Proposed Quantity Remark
7% No. system system
ter Cooler Tube light Peak
LED (9.9
1 and CFL 588 saving
Computers kW)
22% (17.3 kW) 6kW/day
12% BLDC motor
3% Others Ceiling
operated ceil- Saving 30
2 Fans (50 650
ing fans kW/day
kW)
(18.2 kW)
Fig. 3. Load Distribution for COEP Hostel Saving
Water Coolers with
3 32 288
DSM techniques viz. energy conservation and peak clip- coolers timers
kWh/day
ping are proposed in this work. This will result in reducing 4
Water Shifting time
2
Savings 6
the overall economic burden on hostel electricity bill and Pumps of usage kWh/day
net reduction of load during peak hours for the utility. Hot water Saving
Solar thermal
5 for 4 22
system
A. Energy Conservation cooking kWh/day

A detailed site visit and survey is done and revealed a sub-

stantial scope of energy conservation. Some of the possible B. Peak Clipping
measures are listed below. The quality and comfort of the Load curve of CoEP hostel is recorded on date 23rd June,
consumers is guarded. 2017 with the help of power quality analyzer is shown in
1) Lighting System Fig. 4.
A small reduction in lighting load can effectively reduce
the hostel energy consumption by a large amount. Old and
inefficient lamps can be replaced with LED lamps to re-
duce energy consumption in corridors and washrooms.
Surveying the site it was found that the total number of 423
tube lights and 165 mini tube lights can be replaced.
The replacement of these lamps with appropriate LED
lamps can approximately reduce the peak load by 6 kW
and energy consumption of 2000 kWh per month.
2) Ceiling Fans
The old ceiling fans, have become inefficient with age and
irregular maintenance, can be replaced by new BLDC mo-
tor ceiling fans. Around 650 fans can be replaced with new
fans resulting with a net reduction of 30 kW in the load. Fig. 4. Load curve of CoEP Hostel on 23 rd June 2017
3) Water Coolers
Water coolers currently overcool the water as a result of As can be seen from Fig. 4, the load curve has two peaks
less controllability. These water coolers can be attached one in morning and one in evening. Morning peak is higher
with a timer circuit to avoid over cooling of water to save than evening peak. The difference between the two peaks
energy. Expected reduction in energy consumption is 288 is around 60 kW.
kWh/day. One of the major contributions to electricity bill is demand
In addition to this, the mess staff can be trained for energy charge (8%). The demand charge paid in the year 2017 is
efficient cooking. Rs.8, 01,000. Considering the climate and geographic loca-
tion of CoEP hostel, Solar PV is concluded to be the best
4) Water Pumps fitting renewable energy source. The solar PV system pro-
Water pumps now are operated as per the requirement posed would be without battery. In order to provide power
without any schedule. They can be operated during off of 60 kW in morning 9 am, a solar system of 100 kWp has
peak hours with a new schedule made so as to reduce the to be installed [12]. This would reduce the morning peak
stress from peak energy consumption hours. It promotes from 220 kVA to 160 kVA.
saving of 6 kWh per day.
Peak demand occurs between 6:00 AM to 10:00 AM.
Along with achievement of the aim of peak clipping be-
tween 7

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 Proceedings of 2018 Conference on Emerging Trends and Innovations in Engineering and Technological Research (ICETIETR)

AM and 10 AM, load demand would be reduced at all power flow.

times of sunshine hours.
To check the feasibility and compatibility of the proposed
solar system, power flow analysis of the integrated system
is carried.
IV. TECHNO-ECONOMIC ANALYSIS OF PROPOSED MICROGRID
Conventional power flow methods developed for
transmission system cannot be used for distribution sys-
tems. Distribution systems have features like high R/X ra-
tio, low voltage, etc. [13]. Newton Trust Region (NTR)
method overcomes the drawbacks of Newton Raphson
method. This method can handle complex equations pre-
sent in a Microgrid. Moreover, Newton Trust Region
Method has a quadratic convergence causing a reduction in
number of iterations [14- 15].
Technical feasibility of the proposed Microgrid at CoEP
hostel is confirmed by coding NTR method of power flow
in MATLAB.
A. Power Flow Analysis
Fig.5 shows the single line diagram of CoEP hostel. DGs
and grid are supplied at bus 1. Bus 1 is considered as refer-
ence bus.
The length and type of cables from transformer to feeders
were measured and the respective resistance and reactance
were calculated as per the data sheet provided by the man-
ufacturer of the cable [16] and is given in appendix. The Fig. 6. Calculations of Losses by NTR power flow analysis
details of Microgrid are shown in Table II. All the calcula-
tions have been carried out in the per unit system with the CoEP Hostel is assumed to be a Microgrid with two
base power and voltage as SB=100 kVA, VB=415 V re- sources solar PV and Diesel Generator. The power flow is
spectively. The system under consideration is assumed to simulated for three cases
be a three-phase balanced system. • Microgrid connected to Main Grid without addi-
tional sources (Grid Supplied Mode)
• Microgrid in Grid Connected Mode (Grid Con-
nected Mode)
• Microgrid in Islanded Mode
1) Grid Supplied Mode

The results of power flow are shown in Table III.

TABLE III. RESULTS FOR GRID SUPPLIED MODE

Real Reactive
Voltages Power power
Bus Angle
Fig. 5. SLD of CoEP Hostel (V) Generat- Generat-
ed (kW) ed
TABLE II. MICROGRID PARAMETERS (kVAr)
1 415.0000 0 213.7444 38.2145
Maximum Load 212.3 kW 2 414.3739 -0.0085 0 0
Solar PV Capacity 100 kWp 3 413.9695 -0.0089 0 0
Diesel Generator Set-I 250 kVA ,0.85 pf 4 413.7509 -0.0314 0 0
Diesel Generator Set-II 82.5 kVA ,0.85 pf 5 408.6592 -0.0662 0 0
6 413.5634 -0.0321 0 0
7 409.5599 -0.1317 0 0
The load data was measured with the help of power quality
analyzer and is shown in appendix. Fig. 6 shows the 8 413.5344 -0.0619 0 0
flowchart of calculation of losses using NTR method of 9 413.6962 -0.0190 0 0

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 Proceedings of 2018 Conference on Emerging Trends and Innovations in Engineering and Technological Research (ICETIETR)

The grid supplies all the load. The bus voltages and angles TABLE VI. LOSSES IN DIFFERENT CASES
are in the acceptable tolerance limit. Grid
Grid Connected Islanded
Supplied
2) Grid Connected Mode Mode
Microgrid Microgrid
The Solar PV system is connected to Bus 4. The results of Real
this case are given in Table IV. Bus 1 is considered as a Power 1.3272 2.6816 1.1932
slack bus for grid connected mode. Loss (kW)
Reactive
Power 0.8964 1.6342 1.1243
TABLE IV. RESULTS FOR GRID CONNECTED MODE Loss (kW)
Bus Voltages Angle Real Reactive
(V) Power power
Generat- Generat- Table VI shows the line losses in all cases. The losses in the
ed ed second case are more on account of addition of extra line
(kW) (kVAr) resistance and reactance. The losses in islanded Microgrid
1 415.0000 0 -165.0043 -135.1584 are minimum on account of distributed power generation.
2 414.3739 -0.0085 0 0
3 413.9695 -0.0089 0 0
B. Economic Analysis
4 418.8692 0.2391 100.0000 0 Economic viability of proposed Microgrid is confirmed by
5 408.6592 -0.0662 0 0 two parameters viz. payback period and DSM indices.
6 413.5634 -0.0321 0 0 On an average a system of 1 kW solar PV generates 1600
7 409.5599 -0.1317 0 0 kWh of energy in a year. With the effective tariff of Rs.9.5
8 413.5344 -0.0619 0 0 per kWh as per the local electricity tariffs, Rs.15, 20,000 can
9 413.6962 -0.0190 0 0 be saved. Additionally, all this energy will be generated in
10 420.8283 0.2155 284.0000 175.0000 the day time which will result in the savings of Time of Day
(ToD) tariff of Rs.1, 28,000 for a Solar PV system of 100
The angle of bus 4 is positive which suggests the flow of kWp. The Solar PV system will need an investment of Rs.80,
power from microgrid to main grid. Voltages and angles of 00,000 [17]. The calculations of payback period are summa-
all the buses show the acceptability of the system. Excess rized in Table VII.
power generated is fed to the grid which is shown with a
negative sign in the Table IV. This ensures the technical TABLE VII. PAYBACK PERIOD CALCULATIONS
feasibility of the proposed system. Reduction Net Savings Net Payback
in per Invest- Peri-
3) Islanded Microgrid Load year ment (Rs) od
Generator with rating 250kVA is operated. The Solar PV (kW) (Rs) (years
system (100 kWp) is connected to bus 4. The results are as )
shown in Table V. 100 kW 16,48,000 80,00,000 4.85

TABLE V. RESULTS FOR ISLANDED MICROGRID

Consumers thus can participate in the process of load con
Real Reactive trol by erection of microgrid and become a prosumer. If
Voltages Power power such Microgrids are developed all across the region, peak
Bus Angle
(V) Generat- Generat- demand can be clipped notably. Further, addition of storage
ed ed
(kW) (kVAr) units can help reduce the peak in the off-peak hours. Thus,
1 411.9730 0.0140 0 0 the combination of DSM with Microgrids can help achieve
2 411.3423 0.0054 0 0 optimized power generation in oppose to stand -alone opera-
3 410.9349 0.0049 0 0
tion of Microgrids.
4 410.7147 0.0179 100.00 0 DSM Indices are calculated to verify feasibility of the sys-
5 405.5842 -0.0532 0 0 tem. Demand Side Management Quality Index (DSMQI) is
6 410.5257 -0.0186 0 0 used to quantify the technical gain from the application of
7 406.4919 -0.1197 0 0 DSM programs. Demand Side Management Appreciation
8 410.4965 -0.0488 0 0 Index (DSMAI) is used to quantify the economic benefits of
9 410.6596 -0.0054 0 0 DSM programs [7].
10 415.0000 0 114.613 38.4754
kwinputwithout DSM 214
DSMQI = = = 1.87
The power generated by Solar PV system is per the re- kW input with DSM 11

quirement. The bus voltages and angles are in the

acceptable tolerance limit.
Cost of 1kWh without DSM 9.51
DSMAI = = = 1.086
Cost of 1Kwh with DSM 8.76

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 Proceedings of 2018 Conference on Emerging Trends and Innovations in Engineering and Technological Research (ICETIETR)

and the world", Hinduatan Times, 2017.

[5] S. Chowdhury, S. Chowdhury and P. Crossley, Microgrids and active dis-
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7 52.54 9.88
8 27.61 1.73
9 15.4 2.88
10 0 0
Total 212.14 37.67

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