A smart grid system requires two-way communication links. Because power-line infrastructure is widely available, power-line communication (PLC) is preferred as the communication technology in smart grid systems. A power-line, on the other hand, was not designed to carry data and thus suffers from disturbances that attenuate the transmitted signal. Therefore, it is beneficial to provide spatial diversity to improve the system performance. Optimal power allocation has always been an issue to be solved in relay-aided communication systems. Using a two-way multicarrier relay configuration, this paper investigates power optimization of a relay-assisted PLC system with the consideration of the quality of service (QoS) constraints. Further, we investigate the combination of half-duplex and full-duplex nodes. Since the QoS constrained power allocation problem is highly non-convex, an alternating optimization (AO) algorithm is proposed to decompose the optimization problem into sub-problems. The AO algorithm is an iterative algorithm where it uses the newly obtained parameters (e.g., power) to find a new set of other parameters. Simulation results show that the proposed system successfully reduces the total power required by the system compared to the conventional bidirectional direct transmission (BDT) system and the relay-assisted two-way information exchange (R2WX) system under the same QoS requirement.
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