Journal Pre-proof

An adaptive data compression mechanism for smart meters considering a demand

side management scenario

Douglas L. de S. Mendes, Ricardo de A. L. Rabêlo, Artur F.S. Veloso, Joel J.P.C.

Rodrigues, Jose V. dos Reis Junior

PII: S0959-6526(20)30237-7
DOI: https://doi.org/10.1016/j.jclepro.2020.120190
Reference: JCLP 120190

To appear in: Journal of Cleaner Production

Received Date: 1 November 2019

Revised Date: 6 January 2020
Accepted Date: 18 January 2020

Please cite this article as: de S. Mendes DL, de A. L. Rabêlo R, Veloso AFS, Rodrigues JJPC, dos
Reis Junior JV, An adaptive data compression mechanism for smart meters considering a demand
side management scenario, Journal of Cleaner Production (2020), doi: https://doi.org/10.1016/
j.jclepro.2020.120190.

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 An Adaptive Data Compression Mechanism for
Smart Meters Considering a Demand Side
Management Scenario

Credit author statement

Douglas L. S. Mendes: Conceptualization, Software, Validation, Data Curation, Writing

- Original Draft, Performance Evaluation, Visualization, and Results Analysis
Ricardo de A. L. Rabêlo: Conceptualization, Methodology, Validation, Resources,
Writing - Original Draft, Writing - Review & Editing, Funding acquisition, Supervision,
Performance Evaluation, Visualization, and Results Analysis Artur F. S. Veloso:
Conceptualization, Methodology, Validation, Resources, Writing - Review & Editing,
Performance Evaluation, Visualization, and Results Analysis Joel J. P. C. Rodrigues:
Methodology, Resources, Writing - Review & Editing, Funding acquisition, Supervision,
Performance Evaluation, Visualization, and Results Analysis José V. dos Reis Júnior:
Validation, Writing - Review & Editing, Supervision, Visualization, and Results Analysis
 An adaptive data compression mechanism for smart
meters considering a demand side management scenario

Douglas L. de S. Mendes1 , Ricardo de A. L. Rabêlo1 , Artur F. S. Veloso1 ,

Joel J. P. C. Rodrigues1,2 , Jose V. dos Reis Junior1
douglas min@hotmail.com, ricardoalr@ufpi.edu.br, arturfdasveloso@ufpi.edu.br,
joeljr@ieee.org, valdemirreis@ufpi.edu.br

a1 Federal University of Piauı́, Teresina – PI, Brazil

2 Instituto de Telecomunicações, Portugal

Abstract

This work proposes an adaptive data compression mechanism to reduce the flow
in the communication infrastructure of the advanced metering infrastructure
(AMI), providing a more agile communication and thus allowing the scalability
of the internet of things (IoT) applications in the demand side management
(DSM) scenario, to automate consumption management and distributed power
generation. Such a mechanism is built into a smart meter (SM) and aims to
reduce the amount of data sent to an electric power company (EPC). Addition-
ally, this mechanism makes use of curve adjustment to find, in an adaptive way
in run time, a functional model, among the available options, that best adapts
to the consumption measures inferred by the SM. The experiments present com-
pression rates where the data recovered by the functional model respect a pre-
established error threshold. Thus, allowing the scalability of DSM applications
in this infrastructure. Therefore, it can to be stated that the presence of the data
compression mechanism proposed in this work is satisfactorily adequate for the
DSM scenario of consumption and distributed generation achieving compression
rates close to 96%, as well as provides the possibility of being adapted to other
contexts, such as WSN.
Keywords: Data Compression, Demand Side Management, Smart Meter,
Smart Grid, Testbed

Preprint submitted to Journal of Cleaner Production January 25, 2020

 1. Introduction

In recent years, world population growth has contributed to the increased

complexity faced by electrical power systems (EPSs), which need to ensure the
supply of electricity to consumers at the moment they desire and with satisfac-
5 tory quality. In this context, smart grids (SGs) have emerged as a new architec-
ture for the EPSs, allying information and communication technologies (ICTs)
with the power grid to meet the increasing demand for electrical energy required
to ensure quality, reliability and availability [1]. In this architecture, the two-
way communication between electric power companies (EPC) and consumers
10 plays a vital role as it provides more significant interaction between them. One
of SG’s main contributions is the presence of sensors scattered throughout the
distribution system, allowing the EPC to be always informed about the opera-
tion of the entire infrastructure, being able to detect possible irregularities and
faults that may exist, practically in real-time [2]. Also, the data collected helps
15 to implement new strategies for cost reduction and more efficient use of the
resources provided by EPC [3].
For EPC to be able to monitor, almost in real-time, the resources used must
have a very robust and well-planned communication infrastructure [4]. With
this in mind, the advanced measurement infrastructure (AMI) brings together
20 ICTs with the goal of mediating communication between consumers and other
network resources with the EPC [5]. Applications of smart cities [6], internet of
things (IoT) [7], green industrial networking self-aware autonomous City [8], a
blockchain model [9], smart technologies for promotion of energy efficiency [10]
and other areas have been automated by ICTs technologies [11].
25 In the context of SGs, the application of ICTs is to often used to connect
sensors and appliances to a smart residential meter or home management system
[7], using technologies based on the IEEE 802.11 (WiFi) standard [12] or IEEE
802.15.4 (ZigBee) [13]. However, in an external environment where there is
a need to connect more remote devices, technologies with greater reachability
30 are used, as well as a greater capacity to handle the large data flow. The

2
 technologies used for long distances can be wired (eg. Ethernet, fiber optics, or
Power Line Communication) [14] or wireless as WiMAX technology [15], NB-
IoT [16], LoRaWAN or SigFox [17], 5G [18], GPRS among others presented
in [19]. These technologies work integrated with routing protocols to better
35 manage the data flow [20].
Monitoring systems deployed to manage the behavior of the SG analyze
the data that passes through the communication infrastructure to detect, for
example, blackouts, power quality disturbances [21], theft, consumption data
[22]. Several devices are used to monitor the entire SG constantly, among them,
40 the smart meters (SMs) [23], which are devices responsible for inferring the
energy consumption of a consumer, whether it is in a residential, industrial
or commercial building. Also, SMs may have other functionalities, such as
detect and classify electrical power quality disturbances [24], inferring water
consumption, gas, temperature, among others [25].
45 The data generated from the SMs monitoring are sent to the EPC via the
AMI at a time-frequency ranging from 5 to 60 minutes. However, the sending
frequency is a parameter dependent on how designers plan SG. For jobs that
perform load monitoring, for example, there is a need for near-real-time mon-
itoring, which significantly increases the amount of data generated by SMs, as
50 well as the possibility of discrepant data [26] [27].
In [28], the authors report that the 230 million SMs installed in an SG in
China generate approximately 29 TB of data annually, and that data refers only
to energy consumption. For these and other reasons, the application of big data
tools, as well as internet applications of things (IoT), contribute to increasing
55 the availability of EPS services, as well as the efficient use of equipment and
energy resources [29] [30]. In addition to allowing better management of existing
resources, the entire structure implemented in the SGs, as well as the data
collected, enable the creation of new ways to manage the use of electric energy,
ensuring a balance between supply and consumption.
60 The management can be done both on the supply side and on the demand
side (DSM), where the existence of bidirectional communication between the

3
 EPC and consumers and the presence of objects connected to the Internet [31]
are directing efforts to improve demand-side management. DSM offers a set
of actions that help consumers plan and monitor their electricity consumption
65 during peak times [32]. Examples of such actions include suggesting consumers
exchange their appliances for more efficient ones, or implementing demand-
side programs that suggest changes in the consumption profile of consumers in
exchange for financial incentives, to increase the availability and the efficiency
in the electric power supply [33].
70 Due to a large number of smart homes that have several sources of consump-
tion and power generation distributed in a smart grid, the data flow from the
houses to the EPC increases exponentially in AMI’s communication infrastruc-
ture. Thus, some works have been proposed to reduce the excessive amount
of this data that is continuously generated to avoid overloading the communi-
75 cation infrastructure [34]. With this in mind, the main objective of this work
is to propose an adaptive mechanism of data compression to reduce the flow
in AMI’s communication infrastructure, providing a more rapid communication
and thus enabling the scalability of the internet of things applications to the
DSM scenario to automate the management of consumption and distributed
80 power generation. Such a mechanism makes use of curve fitting to find, adap-
tively at run time, a functional model, among the available options, that best
suits the consumption measurements inferred by SM.
The main contributions of this work are listed below:

1. The development of an adaptive mechanism for data compression applied

85 in smart meters;
2. The calculation of a functional model that allows representing the profile
of consumption at a certain time horizon;
3. Reducing the flow of data that is transmitted by the AMI, avoiding prob-
lems related to communication, such as loss of connection, increase in
90 packet transmission latency, etc.
4. The construction of a testbed that analyzes the impact caused by the

4
 implementation of the mechanism in a practical environment;
5. The incorporation of a smoothing solution to prevent outliers that may
compromise the performance of the mechanism and consequently the value
95 of the tariff charged to the consumer;
6. Feasibility analysis of the data compression mechanism in the context of
DSM for the management of consumption and distributed power genera-
tion.

The rest of the article is structured as follows: in the Related Works section,
100 similar work is discussed. In the section, Mechanism Proposed, the proposed
adaptive mechanism is presented. In the Results and Discussions section, we
present the experiments carried out to validate the application of the proposed
mechanism, as well as the discussions generated when interpreting the results.
Finally, in section Conclusions and Future Works are presented the final con-
105 siderations and the subsequent studies to be realized.

2. Related Works

The management of a residence consumption and power generation by the

DSM in an SG communication infrastructure is provided through an AMI. This
AMI has a Wireless Sensor Networks (WSNs), which is a vast number of sensor
110 nodes. These are the devices responsible for monitoring a given environment
and have limited energy and computational resources. These devices regularly
measure and send data to a concentrating device, called a sink node, which stores
and processes the collected information. The communication technologies used
by the sensor nodes to transmit and receive data are one of the main factors
115 in reducing their useful life since their operation consumes significant energy.
Thus, efforts to reduce the volume of data aim, among other things, to extend
the life of the network to increase its availability [35] [36].
In the SGs, the various SMs spread throughout the distribution system pro-
vide a large volume of data that is transported by the communication system
120 to the EPC. Although they do not have limitations with the energy consumed

5
 by such devices, the communication infrastructure often operates overloaded,
because, in addition to the SMs, several other devices use such a structure.
Several techniques found in the literature aim to compress large amounts of
data to minimize the costs associated with the communication infrastructure
125 and the data storage [37] [38]. Existing compression techniques can be classified
as lossless or lossy, which refers to the presence of possible loss of information
during the compression process.

2.1. Lossless reduction

Reduction techniques that do not present any level of imprecision in the re-
130 trieved information are ideal, but they demand a high computational cost, mak-
ing it impossible to apply it in certain contexts. In [39] the authors conducted a
study on four lossless data compression techniques (Adaptive Trimmed Huffman
(ATH), Adaptive Markov Chain Huffman Coding (AMCH) Lempel Ziv Markov
Chain Algorithm (LZMA), Lempel Ziv-Markov Chain-Huffman (LZMH)). Such
135 algorithms are variations/combinations of two main techniques, [40] and [41].
The metrics used to evaluate performance were the amount of memory used,
the compression rate, and the processing time. After analysis, the authors con-
cluded that the most appropriate algorithm to apply to SMs would be LZMH
because its execution requires a reasonable time and presents a compression
140 between 75% and 90%. Also, the authors concluded that for an approach where
the execution time is crucial, the ATH presented the most appropriate tech-
nique, although its compression rate reached values between 40% and 60% in
the obtained results.

2.2. Lossy reduction

145 In WSNs, one way to reduce the amount of data is to group the data of the
devices that are physically close, due to the spatial correlation between them
[42] [43]. Another way to extend the network lifetime is to turn off certain
features when they are not being used [44]. However, in the context of SG,
the grouping of different SMs does not appear to be an attractive solution,

6
150 since not necessarily the closest physically SMs present similar consumption
measurements.
In addition to the existing spatial correlation due to the physical proximity
between the sensor nodes, the temporal correlation can be used as motivation
not to group the devices, but rather the collected data. In [45], the authors pro-
155 posed K-RLE, which is a data compression technique where the data collected
sequentially are grouped if the difference between them is less than or equal to a
satisfactory, previously defined threshold. In simulations, the authors were able
to reduce the amount of data that should be sent in 56%. However, the choice
of K should be made by a specialist who should preset the acceptable limit of
160 error, since the information retrieved is not the same as the original inferred.
Also, compression is performed only for sequentially collected measurements,
and the presence of discrepant data may interfere with the process.
In [46] [47], the authors proposed an approach using multiple linear regres-
sion where one or more lines represent the collected data according to the Pear-
165 son coefficient values and correlation coefficient. In both works, instead of send-
ing the raw data, only the coefficients of the line are sent. Such an approach,
despite reducing the amount of data as well as the cost associated with the stor-
age, does not allow to recover the data initially used to calculate the coefficients.
Other papers presented proposals based on linear and non-linear regression [48]
170 [49] but did not present an approach where other types of functions could be
analyzed according to the behavior of the data.
Despite the existence of information loss, the compression techniques seek to
retain the most valuable part of the information, so that even inaccurate, and it
is still acceptable. Thus, the present work proposes an adaptive mechanism of
175 data compression, which automatically selects the most appropriate functional
model, among the options, to represent a set of measurements referring to the
consumption of electric energy. Such a mechanism presents imprecision in the
values retrieved by the model. However, a previously established acceptable
error threshold controls the level of imprecision.

7
180 3. Proposed Adaptive Mechanism

Reducing the volume of data sent by SMs reduces the costs associated with
data transmission, favoring the proper functioning of the communication infras-
tructure. Also, it reduces the possibility of overloading the infrastructure, since
this can cause problems, such as increased latency in the message exchange,
185 packet loss, among others. The adaptive mechanism proposed in this work uses
curve fitting to find a functional model, among a set of options that best repre-
sent a given set of measurements of electric energy consumption. Thus, instead
of sending data packets containing the consumption value, the SM sends only a
packet containing coefficients of a function representing the set of measurements.
190 Figure 1.a illustrates the basic principle of the operation of the data compres-
sion mechanism, where two linear functions represent the consumption profile
presented by the 20 measurements collected by an SM. The blue line represents
the actual consumption profile, and the red lines represent the linear adjust-
ments made. In this case, instead of the SM sending the 20 data packets con-
195 taining the kilowatt-hours (kW h) consumed, it will be necessary to send two
packets, where each packet contains only two coefficients relative to the calcu-
lated linear functions. Using the coefficients, the EPC can recover the values of
kW h consumed by an individual consumer.
However, it can be seen that for the profile illustrated in the graph, the linear
200 functions do not present a good representation since the values recovered by both
are entirely different from the originals. Therefore, other types of functions were
considered. In figure 1.b, the adjustments made for two polynomials of degree
3 represent more appropriately the consumption behavior presented. Thus, the
values recovered by the EPC using the calculated coefficients will be closer to
205 the real values collected by the SM.
For an accurate representation of the original data, an option would be the
interpolation application to find a polynomial function that would be possible to
retrieve the exact values without any difference in the original values. However,
applying interpolation to the set of 20 samples presented in figure 1 would result

8
 Figure 1: Comparison between linear and polynomial of degree 3 adjustment.

210 in 21 coefficients that should be sent to the EPC. Such an approach will send
more data, so it is not advantageous for this scenario.
Although a polynomial function best represents the nonlinearity presented
in a consumption profile, this type of function will not always present a better
result, since the profile varies throughout the day and depends on the consumer.
215 In this way, the proposed mechanism presents an adaptive approach where a
specific type of function is chosen automatically, according to the behavior pre-
sented by the consumer.
For the mechanism to have a variety of functions of different behaviors,

9
 the following types of functions were used: linear, polynomial of degree 2, a
220 polynomial of degree 3, and exponential. The coefficients are calculated through
the least-squares method presented in [50], and these types of functions were
selected due to the different behaviors presented by each one, but in future
works, other types of functions must be analyzed.
Upon receiving the function coefficients, the EPC can reassemble the func-
225 tion and assign values to the independent variable, to then retrieve the value of
the kW h collected by the SM. Then the values of kW h found allow the EPC to
charge the consumer, or even adjust the cost associated with the use of electric
power, in a scenario where pricing varies over time.
To quantify the quality of the adjustment, to compare the different types
230 of functions, the mean square error (mse) is used to measure the difference
between the actual value collected by SM and the value retrieved by the model’s
functional calculation. The calculation of mse is presented in Equation 1 where
y est represents the value estimated by the function, y real the real value collected
by SM and n the number of measurements present in the data set used to
235 calculate the model.

Pn est
i=1 (yi − yireal )2
mse = (1)
n

3.1. Mechanism functioning

In figure 2 illustrates the operation of the adaptive data compression mecha-

nism proposed in this work. Initially, in step 1, the SM collects the measurement
and adds it to a memory buffer. At least two measurements are necessary before
240 the adjustment can be performed. Thus a further measurement must be added
in the buffer (step 2 ). Then with the current measurements, the coefficients of
the different types of functions are calculated, as well as their respective mean
square error values (step 3 ). An error threshold is preset to regulate the cal-
culated values in relation to the original data. This threshold determines the
245 maximum limit of measurements that a functional model can represent. If any
of the functions have a mse smaller than the threshold, the current error is con-

10
 sidered acceptable, so the SM must proceed by adding one more measurement
to the buffer by repeating the process in step 3.
When the mse is less than the threshold, but the buffer is already full. It
250 means that the EPC is at the maximum waiting time, and it is necessary to
send the consumption information (step 4 ). Consequently, the SM transmits
to the EPC the coefficients of the function that has the smallest mse and then
empties the buffer, returning to the step 1. If no function has a mse less than
or equal to the threshold means that when adding a new measurement, the
255 satisfactory setting is no longer. Therefore the coefficients of measurements in
the buffer except for the last one added must be transmitted (step 5 ). Finally,
only the disregarded element will remain in the buffer (step 6 ), and the stream
will return to the 2 step.
The proposed mechanism has the advantage of automatically selecting a
260 type of function that best represents a specific set of measurements. To achieve
good results, it is necessary to configure two adjustable parameters: the error
threshold and the buffer capacity. The error threshold refers to the level of
imprecision in the values retrieved by the coefficients, and the buffer capacity
means the number of measurements that are represented by a model, as well as
265 represents the waiting time spent by the EPC to receive new information.
Also, another point to highlight is the presence of outliers that may affect the
performance of the mechanism during the tuning process, interrupting the in-
sertion of other measurements without the buffer is full. Thus, in the performed
experiments, a pre-processing step was added to smooth out the possible pres-
270 ence of outliers that could impair the performance of the mechanism.

4. Results and Discussion

Several experiments analyzed the parameters that could be adjusted (error

threshold and buffer capacity), to evaluate the performance of the proposed
mechanism. For each scenario, the mechanism was submitted to different con-
275 sumption profiles, since the performance of the mechanism depends on the con-

11
 Figure 2: Functioning of the adaptive data compression mechanism.

sumption behavior. All measurements used in the simulations were extracted

from the Load Profile Generation (LPG) [51] tool and represent a minute-by-
minute consumption monitoring during the year 2016. The choice of the year
is because such measurements were used in [33], and this work is considered
280 in the integration feasibility analysis in the DSM scenario. Brazil is a country
with continental dimensions and regions with different mean temperatures (fig-
ure 4), three Brazilian cities (Curitiba, São Paulo, and Teresina) were adopted
for experimentation purposes. Table 1 presents the five different consumption
profiles, extracted from LPG for each city.
285 The cities chosen have different mean temperatures, which influence the
consumption of electric energy and also the performance of the mechanism since

12
 Table 1: Description of different consumer profiles.

Profiles Description
1 Single adult
2 Couple without children
3 Couple with 03 children
4 Mother with 02 children
5 Couple with 02 children

Figure 3: Different consumption profiles.

it uses a functional representation to represent consumption behavior. The

figure 3 illustrates the different behaviors of the profiles.
To analyze the performance of the proposed adaptive data compression
290 mechanism, four different scenarios were studied: a) data compression rate for
different configurations of error threshold and buffer capacity; b) computational
cost associated with execution of the mechanism in a hardware; c) financial

13
 Figure 4: Average temperature observed in Brazil [52].

impact caused by the imprecision in the data recovered; and d) the possibility
of applying the integrated mechanism to other programs presented in the DSM
295 scenario.

4.1. Compression Rate

The compression rate quantifies the compression level found by the mecha-
nism, whose value is calculated, dividing the amount of data after compression
by the original data quantity (Equation 2). For compression to occur, the value
300 obtained by this metric must be between 0 and 1 since values above 1 represent
the data expansion.

data size with compression

Compression ratio = (2)
data size without compression
The experiments simulated 300 different scenarios (3 cities × 5 profiles ×
4 different buffer capacities × 5 different error thresholds). When analyzing

14
 the data compression rate provided by the mechanism, the results obtained
305 vary according to the selected configuration. The values found are shown in
percentage in the tables 2 and 3.
The number of measurements that are represented by a functional model
does not depend only on the error value, because the more measurements are
added to the buffer, the longer the EPC waits for new information. Assuming
310 a capacity of a maximum of 20 measurements and taking into account that
the measurements are collected every 15 minutes, it is assumed that the EPC
spend up to 5 hours without receiving the information collected by the SM.
Thus, a maximum limit of measurements must be stipulated, and this parameter
evaluated in the simulations with different values. The table 2 presents the
315 results for the four different buffer size configurations. From the results, it
can be seen that regardless of the type of consumer profile, as well as the city
where it is located, as the maximum buffer capacity increases, the higher the
compression obtained by the adaptive mechanism. In other words, the larger
the buffer capacity, the better the mechanism performs, compressing more data,
320 and further reducing the flow of data trafficked through the communication
infrastructure. However, this parameter has a direct impact on the waiting
time of the EPC to receive consumption measurements, so one must carefully
establish this parameter.

Table 2: Compression rate result for different configurations of buffer capacity, in percentage.

City Buffer Prof. 1 Prof. 2 Prof. 3 Prof. 4 Prof. 5

6 83.33 83.08 83.01 83.12 83.12
12 91.66 91.30 91.20 91.36 91.36
Curitiba
18 94.44 94.03 93.91 94.09 94.09
24 95.83 95.39 95.26 95.46 95.46
6 83.33 83.09 83.01 83.13 83.13
12 91.66 91.31 91.20 91.37 91.37
São Paulo
18 94.44 94.04 93.91 94.11 94.11
24 95.83 95.39 95.26 95.48 95.48
6 83.33 83.08 83.03 83.13 83.13
12 91.66 91.31 91.22 91.37 91.37
Teresina
18 94.44 94.04 93.94 94.11 94.11
24 95.83 95.39 95.29 95.48 95.48

15
 The error threshold is another parameter that can be set by the EPC in a
325 prudent way, since a minimal value impairs the data compression obtained by the
mechanism, but also a significant threshold value can be financially detrimental
to the consumer or the EPC, due to high inaccuracy acceptable in the value of
kW h recovered by the functional model. The table 3 presents the results for
different error threshold configurations, where the behavior of the mechanism is
330 independent of the consumption profile as well as the location of the consumer.

Table 3: Compression rate result for different error threshold settings, in percentage.

City Threshold Prof. 1 Prof. 2 Prof. 3 Prof. 4 Prof. 5

10−5 91.30 89.56 89.08 89.82 89.82
10−4 91.32 91.24 91.19 91.26 91.26
Curitiba 10−3 91.32 91.32 91.32 91.32 91.32
10−2 91.32 91.32 91.32 91.32 91.32
10−1 91.32 91.32 91.32 91.32 91.32
10−5 91.30 89.57 89.07 89.87 89.87
10−4 91.32 91.24 91.19 91.27 91.27
São Paulo 10−3 91.32 91.32 91.32 91.32 91.32
10−2 91.32 91.32 91.32 91.32 91.32
10−1 91.32 91.32 91.32 91.32 91.32
10−5 91.30 89.58 89.18 89.88 89.88
10−4 91.32 91.24 91.21 91.27 91.27
Teresina 10−3 91.32 91.32 91.32 91.32 91.32
10−2 91.32 91.32 91.32 91.32 91.32
10−1 91.32 91.32 91.32 91.32 91.32

For each simulated scenario, the impact on data compression was also ana-
lyzed by applying a filter to smooth out the presence of outliers that might not
only impair the performance of the mechanism but would hamper the charg-
ing process by charging the consumer an inconsistent value. For the sake of
335 simplicity, the calculation of the moving average in different configurations was
used: simple, exponential, triangular, and modified moving average [53]. All
these variations are implemented by the MATLAB [54] tool and were used in
the pre-processing of the data. Table 4 presents the results obtained for the
application of the different available moving average configurations to analyze
340 the impact on the compression ratio. The results obtained from this analysis

16
 show a small variation in the compression ratio that does not compromise the
performance of the mechanism. Even so, in future work, further study should
be performed to evaluate the performance of other tools that soften or treat
outliers that may influence the measurements.

Table 4: Compression rate result for different moving average settings, in percentage.

Moving Average Compression ratio

Without moving average 85.34
Simple 83.88
Exponential 83.88
Triangular 83.88
Modified 85.25

345 The values in tables 2 and 3 presents the results obtained by subjecting the
adaptive mechanism of data compression to several experiments, for different
configurations of error threshold and buffer capacity. In the presented results,
the obtained values of the compression rate are similar when the mechanism is
submitted to the same configuration, and this is because the application of the
350 mechanism presents similar results independently of the profile of consumption.
More specifically, some results obtained in Table 3 are equal, even under condi-
tions of different error thresholds, the justification for these values refers to the
accuracy found by the adjustment to be less than the defined threshold. In a
more comprehensive analysis, one can guarantee that the best compression rates
355 are found when applying a high error threshold value and buffering capacity.
Also, when analyzing the results of Table 4, it can be seen that the application
of the moving average to the scenarios experienced does not have a significant
impact on the compression ratio, and the result obtained a satisfactory value.

4.2. Testbed

360 To analyze the issues related to the computational cost of the adaptive mech-
anism, a testbed was developed to extract information validating its implemen-

17
 tation in SM. For this, a survey was carried out (presented in Table 5) of the
leading microcontrollers present in the current market, which are most used by
state of the art to perform testbeds in the IoT scenario [55].

Table 5: Comparison between microcontrollers.

Board Flash Clock Memory Wifi

Arduino UNO 32 KB 16 MHz 2 KB No
Arduino DUE 512 KB 84 Mhz 96 KB No
ESP8266 01 512 KB 160 Mhz 64 KB Yes
ESP32 4MB 240 MHz 520 KB Yes
Raspberry Pi 3 16 GB 1.4 GHz 1 GB Yes

365 Among the leading microcontrollers is the Arduino UNO [56] and the DUE.
In the ESPRESSIF [57] family are the ESP8266 01, with WiFi and low power
consumption and ESP32, which is the latest release that has more processing
power, more memory space, WiFi, Bluetooth 4.0 and more programmable ports.
When comparing the options listed, the ESP32 is the one that presents a better
370 cost-benefit, however, during the development of the testbed, some problems
with its use were found, due to its somewhat limited memory capacity. Thus,
for the testbed simulation, the Raspberry Pi (figure 5) was used to play the role
of SM, since it is the device with the most significant computational resources,
among the analyzed options.
375 The figure 6 represents the simulated scenario where the SMs collect the
consumption data and sends it to the EPC. SMs are connected to a low-range
network that represents a specific area or region (neighborhood) of a city. The
AMI is between consumers and EPC, and it collects information from SMs and
sends them to the EPC. This infrastructure can use 5G, NB-IoT, WiMax, GSM,
380 among others.
In this experiment, we tried to analyze not only the execution of the mech-
anism but also the execution of the curve fit for the types of functions imple-
mented. The table 6 presents the results obtained where the metrics analyzed

18
 Figure 5: Raspberry Pi 3.

were: the execution time, the use of memory, and the CPU of Raspberry Pi.

Table 6: Use of computational resources in the execution of the proposed mechanism.

- Time (ms) Memory (MB) CPU (%)

−5
Exponential 1.66 3.84 * 10 3.88
−5
Linear 1.74 0.96 * 10 5.47
2º Polynomial 2.13 22.60 * 10−5 7.02
−5
3º Polynomial 2.60 25.13 * 10 8.29
All mechanism 10457.44 0.25 26.99

385 From Table 6 it can be seen that for types of functions that require a higher
quantity of coefficients to be calculated, an increase in the use of memory and
CPU resources is noted. However, even if SM has other features that require
more significant effort from existing computational resources, the costs asso-
ciated with running the mechanism are not of significant impact. Thus, the
390 authors of this work believe that the implementation of the adaptive mecha-
nism of data compression in the SMs available in the market is feasible from the
computational point of view.

19
 Figure 6: AMI Communication Infrastructure.

4.3. Financial Impact

The data used in the compression process refers to the consumption of elec-
395 tric energy, and this value is significant in the charging process. Since the
functional model presents a certain level of inaccuracy, damages to the EPC or
the consumer can be obtained. For this, the error threshold has the function of
determining a maximum limit of imprecision that must be accepted, in exchange
for the benefit provided by the reduction of the flow of data transmitted by the
400 communication infrastructure.
Thus, another analyzed experiment refers to the financial impact caused by
the difference between the actual value collected by SM, and the value recovered
through the functional model received by the EPC. The results presented in
Table 7 present an average of the difference between these actual and recovered

20
405 values multiplied by the average price of kW h billed during the year 2016. The
results presented demonstrate that the existing imprecision has a little financial
impact.

Table 7: The financial impact caused by the difference between actual value collected by SM
and the value calculated by the functional model for the year 2016.

City Prof. 1 Prof. 2 Prof. 3 Prof. 4 Prof. 5

Curitiba $ 1.48 $ 5.66 $ 6.62 $ 4.51 $ 4.51
São Paulo $ 0.11 $ 5.94 $ 6.78 $ 5.04 $ 5.04
Teresina $ 1.62 $ 6.51 $ 8.29 $ 4.43 $ 4.43

No matter how small the threshold is, there will always be a certain level
of inaccuracy. Still, this experiment demonstrates that the financial impact can
410 be disregarded, taking into account the benefits in reducing the costs associated
with the communication infrastructure due to reduced traffic flow.

4.4. Integrating the adaptive mechanism into the DSM scenario

How DSM consists of a portfolio of consumer measures/actions to ensure

the efficiency, quality, and availability of residential electricity consumption and
415 generation. It is important to emphasize that two-way communication between
the EPC and consumers plays a key role, as it enables the creation of new forms
of energy use management, ensuring the balance between supply and consump-
tion. The development and implementation of solutions for the problem of
demand-side management must take into account the data flow of SMs, sen-
420 sors, and controllers spread over the electrical network and in the installation
of consumers, limitations related to communication such as limited bandwidth,
communication protocols, interference from wireless technologies, and among
others.
To evaluate the applicability of the compression mechanism proposed in the
425 DSM scenario, the authors performed an experiment considering the presence of
a HEMS developed in [58]. The HEMS consists basically of three main compo-
nents: Advanced Measurement Infrastructure (AMI), Intelligent Meter (SM),

21
 and Energy Management Controller (EMC), as can be seen in figure 8. The
EMC is responsible for determining the optimized scheduling of residential ap-
430 pliances by considering real-time electricity prices (RTP), as well as the different
categories of home appliances [59]. The implemented multi-objective optimiza-
tion model aims to minimize the cost associated with the consumption of electric
energy, as well as to minimize the inconvenience (dissatisfaction/discomfort) of
the final consumers subject to a set of restrictions, such as minimum and max-
435 imum load limits for each time interval; ramp limits; minimum consumption
related to the planning horizon; and, operational restrictions of the different
categories of residential appliances.
The application of the EMC results in a change in the profile of electric
energy consumption since the implemented optimization model performs a load
440 shifting to minimize the cost associated with the consumption of electric energy
and to minimize the inconvenience. Such a change can be observed in figure 7,
where the consumption profile represented by the blue line is modified after the
suggestion of DR to the orange profile, according to the price of energy (green
line). Therefore, through the experiments carried out using the new consump-
445 tion profiles, we intend to evaluate the applicability of the data compression
mechanism.
For validation of the experiment, the profile number 5 (Table 3) was used
in the city of Teresina to analyze the financial loss due to inaccuracy between
the actual value collected by SM and value recovered by the EPC. The Table
450 8 presents the results where the values in dollar ($) obtained are similar to the
values presented in the tables 2 and 3, confirming that the proposed adaptive
mechanism is capable of acting without interfering with the execution of other
programs available to the consumer in the DSM scenario.
When submitting the measurements to the proposed optimization process, a
455 change in the consumption profile was observed, since the consumer in question
began to use the electric energy more efficiently, aiming at obtaining an electric-
ity consumption that results in a lower cost and less dissatisfaction/inconvenience.
Even so, the experiment showed that when applying the data compression mech-

22
 Figure 7: Consumption profile before and after the optimization suggested by DR.

Figure 8: Infrastructure of a DSM (Adapted from [58]).

Table 8: Application of the adaptive compression mechanism in a DSM scenario.

BufferThreshold 10−5 10−4 10−3 10−2 10−1

6 82.49% 83.32% 83.33% 83.33% 83.33%
12 90.42% 91.64% 91.67% 91.67% 91.67%
18 93.05% 94.41% 94.44% 94.44% 94.44%
24 94.36% 95.79% 95.83% 95.83% 95.83%

anism with the post-optimization measurements, it was possible to achieve a

460 satisfactory compression ratio.

23
 5. Conclusions and Future Works

Due to a large number of smart homes that have several sources of con-
sumption and power generation distributed in a smart grid, the data flow from
the houses to the EPC increases exponentially in AMI’s communication infras-
465 tructure. With this in mind, the main objective of this work is to propose an
adaptive mechanism of data compression to reduce the flow in AMI’s communi-
cation infrastructure, providing a more agile communication and thus enabling
the scalability of the internet of things applications to the DSM scenario to
automate the management of consumption and distributed power generation.
470 Such a mechanism makes use of curve fitting to find, adaptively at run time, a
functional model, among the available options, that best suits the consumption
measurements inferred by SM.
The experiments present compression rates where the data recovered by the
functional model respect a pre-established error threshold. The study that as-
475 sessed the impact caused by the inaccuracy shows that the financial impact
provoked is negligible over the concerning the in comparison with the gain pro-
vided by the reduction of the volume of data transmitted by the communication
infrastructure. This way, allowing the scalability of DSM applications in this
infrastructure. Therefore, this DSM may deal with demand-based (price-based
480 or incentive-based) programs, electricity consumption, consumer comfort, use
of renewable sources, storage systems of energy, the diversity of electrical equip-
ment, the quality of electric energy, and the monitoring of loads. At the same
time, DSM must contemplate automatic solutions to encourage consumer partic-
ipation by reducing the need for manual intervention. In this way, the consumer
485 can implement in their residence a set of services, which aims to reduce the costs
associated with the consumption and production of electricity.
The applicability of the adaptive mechanism of data compression associated
with the consumption of electric energy considering the presence of a HEMS
was evaluated. Therefore, employing demand response algorithms implemented
490 in the EMC, a change in the electric power consumption profile is observed

24
 (figure 7). This change in consumption is the result of load shifting, as well
as the operation of energy storage systems and renewable energy resources.
When implementing the adaptive mechanism in the HEMS, it can be seen that
even with the change in the consumption profile, suggested by the DR, the
495 results obtained do not present very different values than those found in the
other experiments. Therefore, it can to be stated that the presence of the data
compression mechanism proposed in this work is satisfactorily adequate for the
DSM scenario of consumption and distributed generation achieving compression
rates close to 96%, as well as provides the possibility of being adapted to other
500 contexts, such as WSN.
The development of the proposed mechanism, besides presenting a satisfac-
tory result, shows the possibility of being adapted to other contexts, such as
WSN. Also, the application of data compression techniques is essential since
the development of applications involving IoT technologies grows considerably
505 over the years. Although the presence of outliers in the collected measurements
may impair the performance of the mechanism, the use of the moving average in
data preprocessing allows smoothing the possible presence of outliers. Further
studies should be performed to analyze other ways of treating outliers, even
to compare the technique used in this work as well as, we intend to implement
510 tests closer to reality where it is possible to analyze not only the amount of data
reduced but also aspects related to data flow in the network, latency analysis,
and among others.

Acknowledgments

This work was supported by FCT/MCTES through national funds and when
515 applicable co-funded EU funds under the Project UIDB/EEA/50008/2020; and
by Brazilian National Council for Research and Development (CNPq) via Grants
No. 431726/2018 − 3 and 309335/2017-5.

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 A Preference-Based Demand Response Mechanism
for Energy Management in a Microgrid

The authors declare no conflict of Interests.