Real‐time electricity pricing of a comprehensive demand responsernmodel in smart grids

摘要

This paper proposes a real‐time interactional pricing scheme to maximize the socialrnwelfare of players in real‐time demand response program in smart grids. Lagrangianrnrelaxation–based dual decomposition is used to separate the social welfare optimizationrnproblem into a retailer's problem along with many consumers' subproblems, andrnthe gradient projection method is adopted to solve them. First, the consumers' subproblemsrnare solved to determine the optimal demand responses to the pricernannounced by the retailer. To obtain the optimal demand response, a comprehensivernmathematical function is developed on the basis of a combination of 5 costumer'srnutility functions reported in literature (ie, linear, potential, logarithmic, exponential,rnand hyperbolic). Afterward, the retailer calculates a real‐time price in response to thernconsumers' reactions to maximize its profit. In terms of practical implementation,rnthe consumers and the retailer interact with each other via a limited number of controlrnmessages exchanges to find the optimal solution at each hour. The proposedrnmethod is evaluated considering the various retailer's cost functions and the consumers'rnbehaviors. Also, the results of elasticity sensitivity analysis are presentedrnfrom the retailer and consumer viewpoints.