Determination of the amount of cost-effective DSM/DR module

This paper presents the methodology applied to determine the level of acceptable costs of a Smart Grid module, able to support combined acting of demand side management (DSM) and demand response (DR) programs. The results of the methodology use have been illustrated by case study - the simulation of one particular DSM/DR program implementation throughout the whole consumption area of Electricity Distribution Company in Serbian capital, Belgrade. The results of the research show that the implementation of DSM/DR program would be useful and profitable for analyzed case study and supposed values of input data - unit costs for each part and device of the system. In order to check the certainty of these results, a sensitivity analysis has been performed, too, changing input data within reasonable limits. Results show that proposed DSM/DR program implementation would be beneficial, even for increased prices of necessary equipment.