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This paper proposes the improvements in deviation settlement mechanism of Indian electricity grid system through demand response management (DRM) with the objective to minimize real-time under-injection/over-drawl or maximize real-time over-injection/under-drawl with respect to scheduled injection/drawl such that the deviation settlement charge (DSC) is minimum, subject to the network power flow equations, transmission line capability constraints, DRM constraints and bounds on variables. The mechanism to settle the unscheduled transactions, commonly named as deviation settlement mechanism (DSM), has been implemented to achieve grid frequency stability by imposing penalties and paying incentives, also known as DSC, for over- and under-drawls from the scheduled transactions. In this paper, the improvements in DSM have been solved as an optimization problem to minimize the DSC for a time period of 96 time-blocks (each of 15 min duration). The proposed improvement in DSM has been tested on modified IEEE 9-Bus system. It has been assumed that the generators installed at bus numbers 1, 2 and 3 are the central generating stations, which are monitored and controlled by the regional load dispatch center (RLDC). The simulation results are obtained (with varying percentages of shifting and different participating patterns of prosumers) for which the remarkable benefits of the proposed improvement in DSM (in terms of DSC minimization and improvement in the voltage profile and power flow) have been presented.

Reliable and affordable electricity is a vital concern worldwide. Because of automation, today's world has become technologically advanced, and thus the demand for electricity is constantly growing. There is a requirement to restructure the prevailing system to overcome this breach of supply and demand, and a key way to address this concern is the smart grid (SG). Active consumer contribution and choice-making is the essential goal supported by SG as well as constructing a working atmosphere where both utilities and beneficiaries affect one another. With SGs, consumers work with utilities to incorporate microgrids, distributed generation (DG), and SGs such as photovoltaic components or energy-storing at usage and responding pricing gestures. Power producers can enhance consistency by incorporating demand-side management (DSM) and including DG at the power grid. This chapter reviews DSM and its integration with SGs, which also includes an introduction to SGs, some benefits and features of DSM and SGs, and a framework for combined scheduling targeted at minimizing the overall expenses for meeting the demand for energy.