Two-sided energy scheduling algorithm for smart grid with storage cost

Abstract

In this paper, we investigate the Demand Response (DR) framework for future smart grid. In this framework, we consider that an energy-supplier, which is equipped with a limited storage capacity and incurred extra energy storage cost, aims at controlling both the Peak-to-Average Ratio (PAR) and Average-to-Valley Ratio (AVR) of all Energy-Users' (EUs') consumption profile. Facing the specialized chagrining function from energy-supplier, the EUs adapt their energy consumptions over time wisely and collaborate to maximize their social welfare. We propose an efficient two-sided algorithm, including both the EU-side and the Supplier-side, to determine the optimal EUs' energy consumptions, energy-supplier's optimal energy-provisioning and its charging parameters. The numerical results show the effectiveness of our proposed algorithm and the performance of our DR framework.