Optimization of Demand Side Management and DG Placement in the Distribution System with Demand Response

In the distribution system, Distribution Generation (DG) plays an vital role and by optimizing the DG the performance and efficiency is improved in the distribution system network. Demand Side Management (DSM) deals with this process of optimizing the DGs in a network. In this paper, a new algorithm is proposed for optimal DSM including the demand response and DG units. The optimal capacity and location of the DGs to be connected in the network are selected using real and reactive power loss and voltage profile. The environmental conditions and economic operation of the system is ensured by optimizing the daily performance of the multiple DG units and grid parameters with and without inclusion of demand response. A non dominated sorting firefly algorithm is used to obtain optimization of the functions and decision making fuzzy system is used to decide the best possible scenario from the list of optimized solutions. It is tested with IEEE 33 bus system. The validity of the proposed DSM methodology is verified with the simulation results.