Pareto Efficient Incentive-Based Real-Time Pricing Model for Balanced Smart Grids

Hyesung Seok,Sang-Phil Kim

doi:10.1109/access.2021.3138466

Abstract

Pareto Efficient Incentive-Based Real-Time Pricing Model for Balanced Smart Grids

Highlights

There are two major problems in current power grids: 1) inefficiency from the high peak-to-average ratio (PAR) because of uncontrolled and unpredictable energy consumption, and 2) unfairness resulting from the unbalanced distribution of the costs and benefits to participants
Appliances have an on-peak period from 5:00 p.m. to 8:00 p.m., i.e., they consume more electricity
The results indicate that there is no universal solution to satisfy all objectives: low subscriber costs and a high service provider profit, as well as a low PAR

Summary

Introduction

There are two major problems in current power grids: 1) inefficiency from the high peak-to-average ratio (PAR) because of uncontrolled and unpredictable energy consumption, and 2) unfairness resulting from the unbalanced distribution of the costs and benefits to participants The former issue has been studied frequently. Residential and commercial subscribers have begun to consider rescheduling energy consumption for more-effective cost and utility management [10,11] In such a condition, the balanced distribution of costs and benefits to subscribers and providers has not been considered in detail because of a lack of information and interest conflicts among participants, even though an imbalance frequently occurs [12,13,14,15].

Methods

Results

Conclusion