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This paper proposes a mechanism for OELC (Optimizing Electricity Load and Cost) for smart grid. The load of every smart home is predicted one-hour prior to their actual usage. To fulfill PL (Predicted Load) of each consumer, multiple resources of electricity are considered, including RE (Renewable Energy) resources. Furthermore, cost to get PL from multiple resources is calculated. In proposed model 3-4 smart homes are grouped in the form of clusters. To reduce the amount of electricity bills, system also allows privileges to share electricity between adjacent smart homes within a cluster. To validate the OELC mechanism, extensive numerical simulations are conducted which shows a significant reduction in electricity load and cost for electricity consumers. In future, to enhance the functionality of OELC, security from cyber-attacks can be considered.

Optimizing Electricity Load and Cost for Demand Side Management in Smart Grid