On the scalability of supply cost for demand management in the smart grid.



Supply Cost, Electricity Pricing, Dynamic Tariffs, Demand Side Management, Smart Grids, Multilevel Optimization


Demand side management focuses on flattening the demand profile, reducing network losses, costly investments in network infrastructure and generation capacity. The supplier pursues a profit for the service it provides. In addition, in demand-side management, the supplier modifies its pricing scheme in order to charge a fair price to each user. In this sense, the price is expected to increase during peak demand. For this reason, the supplier needs to know his supply cost to propose a reasonable price scheme. However, there has been scarce interest in finding a supply cost function that enables to develop of a real and scalable model of the supplier-user interaction. In the literature, a bi-level optimization has been proposed to model the supplier-user interaction and some supply cost functions were proposed without any analysis. In this paper, a new supply cost is proposed, and it is compared with the supply cost functions found in the literature analyzed. The proposed supply cost shows good performance, and it can be scalable.


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Author Biographies

Sergio Nicolas Bragagnolo, CIDTIEE - Facultar Regional Cordoba - Universidad Tecnológica Nacional

Sergio Nicolás Bragagnolo is a PhD student in Engineering Sciences at the National University of Cordoba (2017) and a Mechanical and Electrical Engineer (2015) graduate of the National University of Cordoba. He is a team research in the CIDTIEE of Cordoba Regional Faculty belonging to National Technological University. He has experience in the use of different software, in the design of transformer stations and electrical installations. His areas of interest are Smart Grids, Demand Management and Electrical Power Systems.

Jorge Carlos Vaschetti, CIDTIEE, Facultad Regional Córdoba, Universidad Tecnologica Nacional

Jorge Vaschetti (SM’15) Electronic Engineer from the National Technological University. PhD in Engineering Sciences from the FCEFyN of the UNC. He is the Director of the CIDTIEE of the Department of Electrical Engineering of the UTN-FRC, where he is an exclusive professor by contest and researcher category "B" and category II of the CONEAU. Currently his research is concentrated in the area of Intelligent Control applied to Electrical Power Systems.

Fernando Magnago, GASEP, Facultad de Ingenieria, Universidad Nacional de Rio Cuarto

Fernando Magnago (SM’ 2003) is a graduate of Texas A&M University with a master's and doctorate degree. Fernando has worked at Nexant Inc. since 2000 where he is a Project Manager. Additionally, he is a professor at the National University of Rio Cuarto, Argentina. His areas of interest include modeling, economic analysis, operation and planning of Power Systems.


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How to Cite

Bragagnolo, S. N., Vaschetti, J. C., & Magnago, F. (2021). On the scalability of supply cost for demand management in the smart grid. IEEE Latin America Transactions, 100(XXX). Retrieved from https://latamt.ieeer9.org/index.php/transactions/article/view/5808