Centralized optimal management of a smart distribution system considering the importance of load reduction based on prioritizing smart home appliances

The distribution system's economic operation is significantly impacted by the management of distributed generation (DG) resources, energy storage (ES), and controllable loads. The paper employs a smart distribution system that incorporates dispatchable and non-dispatchable DG resources, as well as battery storage, in addition to the demand response (DR) scheme. New modelling was performed in hourly steps to achieve the optimal unit commitment. In smart homes, appliances are prioritized and classified into four types: adjustable, interruptible, shiftable, and uncontrollable loads. Load reduction in smart homes is also considered based on load prioritization and customer participation in the DR scheme to achieve the proposed scheme's objectives. The proposed method considers costs associated with microturbines (MTs), including manufacturing, start-up, shutdown, and pollution. Additionally, planning is conducted to purchase or sell electricity to the upstream network. The simulation is run on an IEEE 33-bus system to demonstrate the proposed method's effectiveness. The system is assumed to be capable of operation in both island and grid-connected modes. The results demonstrate the proposed approach's efficacy in load reduction, operation cost, and execution time.