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Traditional systems are faced with problems such as energy loss, growing in energy demand, reliability and security, so they are turning into smart grids (SGs) to solve these problems. SGs provide a bi-directional energy connection between service providers and consumer. On the other hand, SGs have various devices for monitoring, analysis and controlling in different parts of the network. Therefore, the SGs needs a communication infrastructure between these different devices. As a result, this connectivity will be achieved by a new infrastructure such as the internet of things (IoT). IoT helps SGs systems to perform various network functions throughout the generation, transmission, distribution, and consumption of energy by using IoT equipment (such as sensors, actuator, and smart meters), as well as by providing the connectivity, automation and tracking for such devices. In this paper, the day-ahead generation scheduling is optimized in the deregulated power market with IoT infrastructure where the goal is to maximize the profit of generation companies (GENCOs). Moreover, this paper has used the demand response (DR) programs to better explore the challenges ahead in the future of SGs with IoT infrastructure. The results help to assess the quality and efficiency of such a system.

Keywords: Deregulation, smart grid (SG), scheduling, demand response (DR), internet of things (IoT).

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