Multi-Level Optimization Model for Electrical Energy Demand with User-Supplier Interaction

Demand Side Management (DSM) is a new paradigm in the context of Smart Grids (SG) to improve the quality of electrical energy and optimize the demand profile. Several researchers have been proposed based on a one-level optimization method to optimize a load profile however, not may have been proposed a two-level method. In this work, a two-level optimization method is presented, which optimizes the electrical cost of the user and the micro-grid demand profile. To solve the problem, two objective functions are formulated, and a Genetic Algorithm (GA) is used, establishing an "indirect control" of the loads. The proposed algorithm allowed minimizing the electrical cost and improved the demand profile with the user-supplier interaction. Furthermore, the supplier does not need to know user behavior to optimize the demand profile in the grid.