Abstract
The future smart grid would help to benefit both the users and the electricity providing companies from smart pricing techniques. In addition, smart pricing can be used to achieve social objectives and would in turn fluctuate wholesale market into demand side. Collecting abundant information regarding the users electricity consumption pattern is a challenging task for utility providing companies. That is, users may not be willing to expose their indigenous information without any incentive. In this paper an Optimal Energy Consumption Scheduling (OECS) mechanism is proposed to tackle this problem. An agent-based forecasting method is designed, which is capable of predicting energy consumption of each consumer with a lead-time of one hour. This forecasting is exploited to estimate the cost of buying required amount of energy from multiple suppliers. Consequently, based on the estimated required energy and cost, an auction mechanism is proposed to optimize the energy traded between consumers and multiple suppliers within a smart grid. The objectives include increased efficiency and cost reduction of electricity usage by the end users. The results and properties of the proposed OECS mechanism are studied, and it is shown that the auction technique is budget balanced for distribution of electrical energy among consumers from diverse renewable generation resources. Extensive numerical simulations are also conducted to show and prove the beneficial properties of OECS mechanism.
Highlights
A smart grid is an electrical network that allows bi-directional flow of electricity and information exchange between suppliers and consumers [1]
In response to the submission, energy trading is performed based on Optimal Energy Consumption Scheduling (OECS)
The properties of the auctioning mechanism were analyzed, and the results show that OECS possesses the properties of allocation efficiency, dominant strategy and incentive compatibility, as well as being budget balanced
Summary
A smart grid is an electrical network that allows bi-directional flow of electricity and information exchange between suppliers and consumers [1]. An auction-based mechanism where bidders send their bids to be evaluated by a third party agent could be a solution to this issue Under this construct, the demands of higher bidders are fulfilled to maintain reliability of an electric grid, even in the peak hours [17]. Energy consumption controller for demand side management in smart grid using VCG mechanism is proposed in [20], [32]. A game-theoretic auction based mechanism is proposed in this research, in which electricity consumers are players of the game and their valuation profiles against each supplier are strategies. Based on the information of estimated energy and cost, OECS mechanism is implemented to optimize energy traded between consumers and multiple suppliers.
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