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An Optimal Demand Response Pricing Model for Smart Grids

This paper presents an optimal demand response pricing model for smart grids. A physical Transmission and distribution grid simulation model with renewable power sources is built to calculate optimal demand response price strategies that maximize peak load shifting and grid efficiency. A parallel PSO (Particle Swarm Optimization) solver implemented on an HPC (High Performance Computing) platform is used for the nonlinear optimization. Results indicate that the optimal demand response pricing scheme would improve overall grid operation performance by intelligently dispatching behind the meter resources in dual directions -- increasing and decreasing load demands.