The Influence of Smart Grid on TOU Programs With Respect to Production Cost and Load Factor, A Case Study of Iran


1 Associate Professor, Electrical Engineering Department, Tehran University, Tehran, Iran

2 Electrical Engineering Department, Tehran University, Tehran, Iran


Reaching an electricity system which is both economically efficient and environmentally friendly is motivating countries to
design and execute different types of TOU demand response programs. But there are certain deficiencies which prevent these
programs to effectively modify the load shape. Smart grid as a means could help the electricity system to reach the highest
demand side management goals which are inaccessible through today’s methods. In this paper, problems facing today’s demand
response programs have been described and Iran’s recently designed TOU program has been analyzed as an example. The
influence of this program has been simulated on Iran’s actual load curve. As a solution to the problems facing DR programs,
Smart Grid has been introduced and the influence of Real Time Pricing (RTP) program in Smart Grid has been simulated on an
actual load curve of Iran’s grid, using multi period load model and adaptive periods. Reaching market equilibrium and the effect
of Smart Grid on price curve has also been simulated. Finally, the current TOU program designed for Iran and the RTP program
in smart grid have been compared with respect to load shape modification, load factor, price curve, and production cost.
Eventually, savings made possible through smart grid per day have been evaluated.


[1] U. S. Department of Energy, "Energy policy Act of 2005",
section 1252, February 2006.
[2] Iran Grid Management Company, 2009,
[3] D.S. Kirschen, "Demand-side view of electricity markets"
IEEE Transaction on power systems, Vol. 18, No.2, pp.520-
527, May 2003.
[4] US Department of Energy, "Benefits of Demand Response in
Electricity Markets and Recommendations for Achieving
Them”, Report to the United States Congress, February 2006.
[5] D. S. Kirschen, G. Strbac, P. Cumperayot, D. Mendes,
"Factoring the elasticity of demand in electricity prices", IEEE
Transaction on power systems, Vol.15, No.2, pp.612-617, May
[6] P. Khajavi, H. Monsef, "Load profile reformation through
demand response programs using smart grid", Modern Electric
Power Systems (MEPS), pp.1-4, 2010.
43 International Journal of Smart Electrical Engineering, Vol.1, No.1, Winter 2012
[7] Rahimi F., Ipakchi A. , "Overview of Demand Response under
the Smart Grid and Market paradigms", Innovative Smart Grid
Technologies (ISGT), pp.1-7, 19-21 Jan. 2010.
[8] U.S. Department of Energy, “Smart Grid: An Introduction”
[9] USA’s National Energy Technology Laboratory (NETL), “A
Vision For The Modern Grid”, March 2007.
[10] Powermag, Vol.152, No.5, pp.42-46, May 2008.
[11] H. Aalami, G. R. Yousefi, M. Parsa Moghadam, “Demand
Response Model Considering EDRP and TOU Programs”,
Transmission and Distribution Conference and Exposition,
pp.1-8, 2008.
[12] Mehr News, Jun 2010,