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A key feature of future smart grids is demand response. With the integration of a two-way communication infrastructure, a smart grid allows its operator to monitor the production and usage of power in real time. In this paper, the authors optimize operator profits for the different cases of load curtailment, under various practical constraints including the physical properties of the power system, and different cost and valuation functions for heterogeneous generation units and loads, respectively. They also investigate the requirements imposed by different cases of the load curtailment on the cyber infrastructure. In particular, they evaluate how the delay of cyber control impacts the frequency stability of the power grid during the load curtailment phase.
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