TY - GEN
T1 - Demand management using utility based real time pricing for smart grid with a new cost function
AU - Ahmed, Khandakar Tanvir
AU - Hasan, Md Nabid
AU - Hossain, Md Farhad
AU - Munasinghe, Kumudu S.
AU - Jamalipour, Abbas
PY - 2017/12/15
Y1 - 2017/12/15
N2 - Considering the time-varying power consumption of users and cost of generation over a day, demand side management (DSM) has become essential to meet the excessive need of users with the limited source of power. In this paper, we propose a utility based optimal Real-Time Pricing (RTP) mechanism for the future smart grid communication systems such that the electricity price corresponds to the optimum system welfare. Here, we formulate a distributed algorithm which is based on the two-way communication among users, decision maker, and energy provider through the exchange of control messages, and determine the optimal price maintaining the equality between the total demand and the offered generation. We also propose a novel cost function for energy provider exhibiting how it reduces the impact of the change in user number to electricity price, unlike a previously proposed cost function. Simulation results confirm that the proposed algorithm is favorable for both the users and energy provider in terms of electricity price and generation cost respectively. It is also demonstrated that our new cost function makes the RTP algorithm user-adaptive and offers a better welfare to both the users and the energy provider.
AB - Considering the time-varying power consumption of users and cost of generation over a day, demand side management (DSM) has become essential to meet the excessive need of users with the limited source of power. In this paper, we propose a utility based optimal Real-Time Pricing (RTP) mechanism for the future smart grid communication systems such that the electricity price corresponds to the optimum system welfare. Here, we formulate a distributed algorithm which is based on the two-way communication among users, decision maker, and energy provider through the exchange of control messages, and determine the optimal price maintaining the equality between the total demand and the offered generation. We also propose a novel cost function for energy provider exhibiting how it reduces the impact of the change in user number to electricity price, unlike a previously proposed cost function. Simulation results confirm that the proposed algorithm is favorable for both the users and energy provider in terms of electricity price and generation cost respectively. It is also demonstrated that our new cost function makes the RTP algorithm user-adaptive and offers a better welfare to both the users and the energy provider.
KW - Demand Side Management (DSM)
KW - Dual Decomposition
KW - Real Time Pricing (RTP)
KW - Smart Grid
KW - Smart Home
UR - http://www.scopus.com/inward/record.url?scp=85046691181&partnerID=8YFLogxK
U2 - 10.1109/ATNAC.2017.8215414
DO - 10.1109/ATNAC.2017.8215414
M3 - Conference contribution
AN - SCOPUS:85046691181
SN - 9781509067961
VL - 2017-January
T3 - 2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017
SP - 1
EP - 6
BT - 2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017
PB - IEEE, Institute of Electrical and Electronics Engineers
T2 - 27th International Telecommunication Networks and Applications Conference
Y2 - 22 November 2017 through 24 November 2017
ER -