A design scheme of the smart appliances to minimize energy cost without reducing customer's utility

Introduction of the smart grid circumstance encourages more demand-side participation in the power system operation. Accordingly, many kinds of the demand response (DR) programs are implemented by electric utilities. Among the DR programs, real-time pricing (RTP) is considered as a good option to utilities because it can directly reflect time-varying production cost to retail price; however, an implementation of RTP requires an automated scheme in customer side especially for the residential customers who have hard time to respond to time-varying price signal manually. This study suggests a customer-side automated scheme result from modifying legacy type appliances into smart appliances. The objective of the modification is minimization of customer's energy cost. In addition, it also reduces the peak-to-average ratio (PAR) on utility perspective. Two types of the SAs are modeled which are do more type SA and store type SA. In design process, the most important philosophy is that customer is not aware of the control. Through the design methodologies presented in this study, customers get financial benefit under RTP while their utility is not reduced. Furthermore, electric utilities can benefit from lowered PAR.