Demand management using utility based real time pricing for smart grid with a new cost function

Khandakar Tanvir Ahmed, Md Nabid Hasan, Md Farhad Hossain, Kumudu S. Munasinghe, Abbas Jamalipour

Research output: A Conference proceeding or a Chapter in BookConference contribution

1 Citation (Scopus)

Abstract

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.

Original languageEnglish
Title of host publication2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017
PublisherIEEE, Institute of Electrical and Electronics Engineers
Pages1-6
Number of pages6
Volume2017-January
ISBN (Electronic)9781509067961
ISBN (Print)9781509067961
DOIs
Publication statusPublished - 15 Dec 2017
Event27th International Telecommunication Networks and Applications Conference, ITNAC 2017 - Melbourne, Australia
Duration: 22 Nov 201724 Nov 2017

Publication series

Name2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017
Volume2017-January

Conference

Conference27th International Telecommunication Networks and Applications Conference, ITNAC 2017
CountryAustralia
CityMelbourne
Period22/11/1724/11/17

Fingerprint

Cost functions
Electricity
Costs
Parallel algorithms
Communication systems
Electric power utilization
Communication

Cite this

Ahmed, K. T., Hasan, M. N., Hossain, M. F., Munasinghe, K. S., & Jamalipour, A. (2017). Demand management using utility based real time pricing for smart grid with a new cost function. In 2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017 (Vol. 2017-January, pp. 1-6). (2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017; Vol. 2017-January). IEEE, Institute of Electrical and Electronics Engineers. https://doi.org/10.1109/ATNAC.2017.8215414
Ahmed, Khandakar Tanvir ; Hasan, Md Nabid ; Hossain, Md Farhad ; Munasinghe, Kumudu S. ; Jamalipour, Abbas. / Demand management using utility based real time pricing for smart grid with a new cost function. 2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017. Vol. 2017-January IEEE, Institute of Electrical and Electronics Engineers, 2017. pp. 1-6 (2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017).
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abstract = "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.",
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Ahmed, KT, Hasan, MN, Hossain, MF, Munasinghe, KS & Jamalipour, A 2017, Demand management using utility based real time pricing for smart grid with a new cost function. in 2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017. vol. 2017-January, 2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017, vol. 2017-January, IEEE, Institute of Electrical and Electronics Engineers, pp. 1-6, 27th International Telecommunication Networks and Applications Conference, ITNAC 2017, Melbourne, Australia, 22/11/17. https://doi.org/10.1109/ATNAC.2017.8215414

Demand management using utility based real time pricing for smart grid with a new cost function. / Ahmed, Khandakar Tanvir; Hasan, Md Nabid; Hossain, Md Farhad; Munasinghe, Kumudu S.; Jamalipour, Abbas.

2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017. Vol. 2017-January IEEE, Institute of Electrical and Electronics Engineers, 2017. p. 1-6 (2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017; Vol. 2017-January).

Research output: A Conference proceeding or a Chapter in BookConference contribution

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AU - Jamalipour, Abbas

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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.

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PB - IEEE, Institute of Electrical and Electronics Engineers

ER -

Ahmed KT, Hasan MN, Hossain MF, Munasinghe KS, Jamalipour A. Demand management using utility based real time pricing for smart grid with a new cost function. In 2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017. Vol. 2017-January. IEEE, Institute of Electrical and Electronics Engineers. 2017. p. 1-6. (2017 27th International Telecommunication Networks and Applications Conference, ITNAC 2017). https://doi.org/10.1109/ATNAC.2017.8215414