In power system

In power system, residential electricity scheduling remains a big problem for households along with opportunities. The increased number of households and the higher number of domestic appliances led to an increase in energy consumption in the residential sector of around 30-40% of total consumption of the world 1. The smart grid enables the utilities moderating the electricity consumption by receiving demand and transmitting price signals through local area network (LAN). Fig. 1 shows a smart grid equipped with information and communication technology (ICT) and durable infrastructure for accumulating the power from other generation sources into a centralized operative system. The dynamic pricing scheme has flexibility to the consumer in scheduling the electricity in accordance with time and demand. The household end-user schedules appliances in such a way to minimize the peak consumption and cost by shifting time intervals 2. Mostly, customers tend to shift the consumption pattern from peak to off-peak in order to avoid the peak energy expenses and other power related issues but on other hand there is a new peak in the off-peak period 34. Demand response (DR) generally refers the change of electricity demand in response to the changes in the electricity price over time. As the base of electricity usage scheduling, the DR information is delivered to the home energy management controller (HEMC), that further transmit the information to the smart meters receiving the price signals from the utility provider via home area network (HAN). At peak demand, the new power generators are hired and new power plants are installed to meet the increasing demand for electricity, that may cause the CO2 emissions and production of air pollutants 5. In day-ahead markets (DAMs), the electricity sellers and buyers make contracts for the next day’s power delivery in the grid. They submit their hourly supply offers/demand bids for each node to the market operator. The market