Abstract
With rapidly increasing electricity demand
globally, it is crucial to manage the electricity load during peak
hours. Fossil fuel-based emission prone generators are often
used to fulfill demand during peak hours, which results in an
increase in the cost of generation. Demand side management
(DSM) is a well-known technique to manage the flexible load.
However, it requires increased compatibility with renewable
resources, which are cheap but inherently intermittent. Along
with financial benefits, electricity management through
enhanced incorporation of renewables will also reduce the sum
of emissions. In this paper, we use convex optimization to
simulate energy consumption, according to the merit order, in
Pakistan's power sector. The simulation framework will be used
to find optimal amount of load that can be shifted from an hour,
using equilibrium optimization under given constraints. The
results depict that the power sector can gain massive financial
and environmental benefits using realistic DSM parameters.