Power grid is an interconnected system of supplying electricity from the supplier to the consumer, consisting of electricity generating plant, high voltage transmission lines- to carry electricity from the generating plant to the load center, and distribution lines- to carry electricity from load centers to individual consumers. A lot of research is being pursued to develop technologies for improving the next generation of power grid called the Smart Power Grid. The Smart Power Grid will have sophisticated communication infrastructure to improve the efficiency of electricity generation using renewable energy sources like the sun, water, etc and also to inform consumers of their electricity usage pattern. Also, the electricity market is now divided into three sections- generation, transmission and distribution. Private companies are competing with each other to provide electricity at the most competitive market price. We have developed two algorithms to help generating companies achieve their goal of meeting the hourly electricity need of the consumers and to do so at a minimum total cost.

In the new global and local scenario, the advent of intelligent distribution networks or Smart Grids allows real-time collection of data on the operating status of the electricity grid. Based on this availability of data, it is feasible and convenient to predict consumption in the short term, from a few hours to a week. The hypothesis of the study is that the method used to present time variables to a prediction system of electricity consumption affects the results.