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Optimal energy consumption scheduling based on Real-Time Pricing in Smart Grid

This paper is concerned with the demand side management problem in smart grid, where consumers are served by multiple energy providers. In order to match with the supply, we propose a Real-Time Pricing (RTP)-based energy consumption scheduling scheme, which consists of energy consumption allocation, energy provider selection and real-time pricing. Specifically, the energy scheduling problem is first cast into a combinatorial optimization problem. Then, a distributed algorithm is designed, where energy providers and consumers jointly compute the optimal energy consumption allocation, energy provider selection and price. The algorithm can maximize the aggregate utility of all consumers in the system in a fair and efficient fashion. Simulation results confirm that the proposed distributed algorithm can potentially benefit both consumers and energy providers.