Ordering electricity via Internet and Its potentials for smart grid systems

Summary form only given. Leveraging the ubiquitous Internet platform, we propose a novel demand side management system called On-line Purchase Electricity Now (or OPEN system). The new system enables the electricity consumers to send advance demand information to the utility provider through the Internet. This is equivalent to purchasing a book via the online bookstore. The utility company, after consolidating the consumers´ advance orders, can decide an optimal generation and distribution scheme to satisfy consumers´ future needs. The lead time between the order placement and the later-on consumption allows the service provider to optimize the generation and distribution plan. Such a virtual energy provisioning system can improve the reliability and stability of the electric grid which is increasingly integrated with variable distributed energy sources. Bayesian theory, hypothesis testing, and dynamic pricing are employed to justify the feasibility and applicability of the OPEN system.