### VOL 3, NO 2 (2016): AUTUMN (NOVEMBER)

### Lower tail estimation with Chernoff bound and its application for balancing electricity load by storage admission

#### Abstract

In this paper we investigate the applicability of the Chernoff in- equality in finding an upper bound on the probability of the lower tail of the aggregate load. The importance of Demand Side Man- agement (DSM) programs in power networks has increased re- cently, especially because of the new challenges like intensive use of renewable energy sources (wind, photovoltaic) and the ex- pected high penetration of Electric Vehicles (EV). We show that Chernoff bound has the potential to be incorporated in DSM algo- rithms to integrate energy storage (e.g. batteries) elements into the power grid and facilitate load shifting.

#### Keywords

Keywords: Large Deviation Theory, Chernoff bound, valley filling, smart grid, Demand Side Management,

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