Abstract-In this paper, we consider a smart power infrastructure, where several subscribers share a common energy source. Each subscriber is equipped with an energy consumption controller (ECC) unit as part of its smart meter. Each smart meter is connected to not only the power grid but also a communication infrastructure such as a local area network. This allows two-way communication among smart meters. Considering the importance of energy pricing as an essential tool to develop efficient demand side management strategies, we propose a novel real-time pricing algorithm for the future smart grid. We focus on the interactions between the smart meters and the energy provider through the exchange of control messages which contain subscribers' energy consumption and the real-time price information. First, we analytically model the subscribers' preferences and their energy consumption patterns in form of carefully selected utility functions based on concepts from microeconomics. Second, we propose a distributed algorithm which automatically manages the interactions among the ECC units at the smart meters and the energy provider. The algorithm finds the optimal energy consumption levels for each subscriber to maximize the aggregate utility of all subscribers in the system in a fair and efficient fashion. Finally, we show that the energy provider can encourage some desirable consumption patterns among the subscribers by means of the proposed real-time pricing interactions. Simulation results confirm that the proposed distributed algorithm can potentially benefit both subscribers and the energy provider.

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In this paper, we propose a novel optimizationbased real-time residential load management algorithm that takes into account load uncertainty in order to minimize the energy payment for each user. Unlike most existing demand side management algorithms that assume perfect knowledge of users' energy needs, our design only requires knowing some statistical estimates of the future load demand. Moreover, we consider realtime pricing combined with inclining block rate tariffs. In our problem formulation, we take into account different types of constraints on the operation of different appliances such as mustrun appliances, controllable appliances that are interruptible, and controllable appliances that are not interruptible. Our design is multi-stage. As the demand information of the appliances is gradually revealed over time, the operation schedule of controllable appliances is updated accordingly. Simulation results confirm that the proposed energy consumption scheduling algorithm can benefit both users, by reducing their energy expenses, and utility companies, by improving the peak-to-average ratio of the aggregate load demand.

In this paper, we focus on the problems of load scheduling and power trading in systems with high penetration of renewable energy resources (RERs). We adopt approximate dynamic programming to schedule the operation of different types of appliances including must-run and controllable appliances. We assume that users can sell their excess power generation to other users or to the utility company. Since it is more profitable for users to trade energy with other users locally, users with excess generation compete with each other to sell their respective extra power to their neighbors. A game theoretic approach is adopted to model the interaction between users with excess generation. In our system model, each user aims to obtain a larger share of the market and to maximize its revenue by appropriately selecting its offered price and generation. In addition to yielding a higher revenue, consuming the excess generation locally reduces the reverse power flow, which impacts the stability of the system. Simulation results show that our proposed algorithm reduces the energy expenses of the users. The proposed algorithm also facilitates the utilization of RERs by encouraging users to consume excess generation locally rather than injecting it back into the power grid.Index Terms-Approximate dynamic programming, demand side management (DSM), load scheduling, power trading.

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