Journal of Modern Power Systems and Clean Energy

ISSN 2196-5625 CN 32-1884/TK

Real-time pricing method for smart grids based on complementarity problem
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1 School of Management, University of Shanghai for Science and Technology, Shanghai, China

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The authors would like to express their appreciation to the editors and reviewers for helping to improve the quality of the manuscript during the peer review process. The work was supported in part by the National Natural Science Foundation of China (No. 11171221) and the Shared University research (SUR: 2015021).

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    Abstract:

    Considering a demand response (DR) based social welfare maximization model, a complementarity problem based on the Karush-Kuhn-Tuker condition is described, which is a non-dual method for determining real-time price for smart grids. The Lagrange multiplier in the dual method, which is used to determine the basic electricity price, is applied in the model. The proposed method computes the optimal electricity consumption, price and production. According to the electricity price, users can arrange their electricity equipment reasonably to reduce the consumption pressure at peak time. The model aims to encourage users to actively participate in the DR and realize peak cutting and valley filling. In addition, the model considers different utility functions representing three types of users. Finally, a Jacobian smoothing version of Newton method is used to solve the model. Statistical simulations of the model validate the rationality and feasibility of the proposed method.

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  • Received:
  • Revised:
  • Adopted:
  • Online: September 24,2019
  • Published: