Smart Grid and Renewable Energy, 2012, 3, 338-347 http://dx.doi.org/10.4236/sgre.2012.34045 Published Online November 2012 (http://www.SciRP.org/journal/sgre) FEDRP Based Model Implementation of Intelligent Energy Management Scheme for a Residential Community in Smart Grids Network Qamar Zia 1 , Muhammad Ali 2 , Zulfikar Ahmad Zaidi 2 , Chaudhry Arshad 2 , Amjad Ullah 1 , Hafeez Ur Rahman 3 , Muhammad Ahsan Shahzad 4 , Beenish Taj 4 1 Electrical Engineering Department, NWFP University of Engineering and Technology, Peshawar, Pakistan; 2 Electrical Engineering Department, COMSATS Institute of Information Technology, Abbottabad, Pakistan; 3 Electrical Engineering Department, Gandhara Institute of Science and Technology, Peshawar, Pakistan; 4 IT Department, Hazara University, Havalian, Pakistan. Email: hallianali@ciit.net.pk Received June 29 th , 2012; revised July 29 th , 2012; accepted August 6 th , 2012 ABSTRACT In the framework of liberalized deregulated electricity market, dynamic competitive environment exists between wholesale and retail dealers for energy supplying and management. Smart Grids topology in form of energy manage- ment has forced power supplying agencies to become globally competitive. Demand Response (DR) Programs in con- text with smart energy network have influenced prosumers and consumers towards it. In this paper Fair Emergency Demand Response Program (FEDRP) is integrated for managing the loads intelligently by using the platform of Smart Grids for Residential Setup. The paper also provides detailed modeling and analysis of respective demands of residen- tial consumers in relation with economic load model for FEDRP. Due to increased customer’s partaking in this program the load on the utility is reduced and managed intelligently during emergency hours by providing fair and attractive incentives to residential clients, thus shifting peak load to off peak hours. The numerical and graphical results are matched for intelligent energy management scenario. Keywords: Demand Response (DR); FEDRP; Intelligent Energy Management (IEM); Residential Area Networks (RAN); Smart Grids 1. Introduction The electric industry is poised to make the renovation from a centralized, producer controlled net-work to one that is less centralized and more consumers interactive. The advancement to smarter grid promises to change the industry’s intact business model and it will be beneficent to all i.e. utilities, energy service providers, technology automation vendors and all consumers of electric power. SG brings improvement in the existing electric grid by incorporating intelligence to each single grid component and the grid architecture. In Residential Area Network (RAN), there is energy manager called REM communi- cates with Home Energy Manager (HEM) through wire- less technology IEEE 802.16. The REM updates the cus- tomers about demand response programs, the peak hours, off peak hours etc. through Smart Meters (SM). In [1], author mentioned that in Home Area Network (HAN), home appliance including electric vehicle chargers, secu- rity products, refrigerators, microwave, and air condi- tioners etc. communicates with each other and HEM us- ing Zigbee technology. In [2], authors suggested Zigbee for home automation due to its low power consumption, low cost, a lot of network nodes and reliability. In [3] author describes that in smart grid topology end user are facilitated by offering different demand response (DR) programs either incentive based or price based. In [4] Demand Response is defined as Changes in electric usage by end-use customers from their normal consump- tion patterns in response to changes in the price of elec- tricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized. DR programs are classified into two main categories i.e. Incentive Based and Price Based Programs (PBP). Incen- tive Based Programs (IBP) is further divided into Classi- cal Programs and Market Based Programs. Classical IBP further sub categories into Direct load control programs and interruptible programs. Market based IBP includes EDRP, Demand Bidding, Capacity Market, Ancillary Services Market. PBP contains Time of Use, Critical Peak Pricing, Extreme Day CPP, Extreme Day Pricing, Copyright © 2012 SciRes. SGRE