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Dynamic Pricing of Power in Smart-Grid Networks

In this paper we introduce the problem of dynamic pricing of power for smart-grid networks. This is studied within a network utility maximization (NUM) framework in a deterministic setting with a single provider, multiple users and a finite horizon. The provider produces power or buys power in a (deterministic) spot market, and determines a dynamic price to charge the users. The users then adjust their demand in response to the time-varying prices. This is typically categorized as the demand response problem, and we study a progression of related models by focusing on two aspects: 1) the characterization of the structure of the optimal dynamic prices in the Smart Grid and the optimal demand and supply under various interaction with a spot market; 2) a greedy approach to facilitate the solution process of the aggregate NUM problem and the optimality gap between the greedy solution and the optimal one.

preprint2012arXivOpen access
Qingsi WangMingyan LiuRahul Jain
Systems and Control
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Open access3 authors1 topic
Imported metadata coverageMissing code, dataset, citation and institution fields are tracked without dominating the paper.Details
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Qingsi WangMingyan LiuRahul Jain

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