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The purpose of this paper is to study conflicting objectives between the gridoperator and consumers in a future smart grid. Traditionally, customers inelectricity grids have different demand profiles and it is generally assumedthat the grid has to match and satisfy the demand profiles of all its users.However, for system operators and electricity producers, it is usually mostdesirable, convenient and cost effective to keep electricity production at aconstant rate. The temporal variability of electricity demand forces powergenerators, especially load following and peaking plants to constantlymanipulate electricity production away from a steady operating point.

Demand Shaping to Achieve Steady Electricity Consumption with Load Balancing in a Smart Grid