Optimization of economic dispatch problem integrated with stochastic demand side response

Risk of global climate change and confronting of tumbling carbon emissions necessitate new ways to collaboratively control and optimize energy production and load. Uncertainty in generation and demand for electric energy require elastic generation capacity and stochastic optimization of generation schedules. The introduction of time-variable energy tariffs is a loom to attract consumers to shift their energy loads into low demand periods. In this paper we will build a model to solve an economic dispatch problem with integration of stochastic demand side response so that the demand can be shifted from peak load hour to off-peak load hour. Unlike other models we will introduce the customer´s willingness to shed their load by giving the price signal an hour ahead of time. In this paper we will also emphasis that neither the price signal should be given too high that the customer cut most of the load by transferring all to the off-peak hour nor it should be too low that the generation utility becomes unable to raise enough profit. The simulation shows the promising results of shedding the load on profitable price signals.