Over time, the number of smart grids installed worldwide is gradually increasing. However, the major portion of the required electricity is still being produced by traditional large-scale and centralized power systems. The main requirement, then, is to study and develop mathematical methods that attend the integration between the two systems previously announced. In this paper, a novel model that addresses this issue is presented. The model minimizes the total operating cost of the large-scale system considering the participation of the smart grid as a dynamic entity, entailing a close relationship between both systems. This approach distinguishes the novel proposal from others that solve similar situations by taking into account the two systems in isolation. Besides, the models that represent the most common organizational structures of the smart grids are also presented in this paper. They are needed to develop the integrated model. Many similar problems in the literature are solved by implementing decomposition techniques, which might obtain a local optimum different from the global one. By contrast, problems with this proposal are solved by using mixed-integer linear programming models that ensure the reaching of a global optimum. The real test case is the integrated Argentine large-scale system and the Armstrong smart grid. Results indicate that the novel model can reach solutions that are 5% lower in comparison with the traditional techniques of considering in isolation. Efficient CPU times enable the possibility of promptly obtaining solutions if there is any change in the parameters. In addition, other benefits, apart from the economical reductions, are also achieved. Operating information closer to the reality of both systems is obtained because it considers the effects of the smart grid in large-scale system solving.

Management of energy plays an important role on having sustainable growth on the economy of developing countries. Electricity is part of the main infrastructure of any country, it can help develop many industries, and any shortage in electricity can jeopardize many heavy industries. In Iran, for many years electricity used to be subsided by the government hoping that economy grows faster but this caused a major problem for this industry since the electricity industry could not handle its expenses and faced with somewhat irreversible crises. In this paper, we present a system dynamic investigation to study the existing crises in this sector. The preliminary result of the implementation of system dynamic is that the sector needs to increase its productivity, significantly and lowers the cost of product.