Impacts of Residential Energy Management on Reliability of Distribution Systems Considering a Customer Satisfaction Model

Residential energy management (REM) systems facilitate the application of residential demand response programs to manage the increasing demand of electricity in power systems. The load curtailment at high price periods and the load shift from high-price to low-price periods are the main results of REM implementation, which may improve the technical and economical operation of the distribution systems. Customers' satisfaction should be considered in the REM procedure to motivate the customers to respond to the received price signals. This paper proposes an optimization-based REM to minimize not only the customer's energy cost but also customer dissatisfaction, which is modeled as a function of load curtailment. In addition, the impact of broad application of REM in bus 6 of RB'I'S is studied on the reliability of a distribution system. To this end, two different methods for reliability evaluation are used to show the effect of load shift and load curtailment on the energy not supplied by the distribution system. The results verify the validity and effectiveness of the proposed REM approach and show the impact of application of REM programs with different penetration levels on the reliability of the distribution system.