Research On Pricing Strategy Of Demand Response Management In Smart Grid

With the depletion of traditional energy and the rising demand for electricity,the traditional power grid is confronted with greater pressure.Smart grid has become a hot topic in the world because of its reliability,safety and environmental friendliness.Demand response is an essential component of smart grid.It can reduce the cost of power generation,improve the stability and efficiency of power system by curtailing the power demand during peak hours.The high speed bidirectional communication network in the smart grid ensures the users and the utility companies communicate and exchange information in real time,through which the real time pricing program realizes.The utility companies change their power supply and real time price based on the power load of users,which induce users to adjust its strategy of power consumption to avoid the peak hours and reduce the pressure of power system.In this paper,the problem of demand response management is studied in two aspects,and we can get the optimal strategy of company's pricing and power production,and optimal power consumption strategy of users.First of all,aiming at the situation of one utility company and multiple users,we propose a demand response model for power price and generation of utility company and power consumption of users.Combining the users' planned total power consumption,we proposed a new parameter,which is threshold of expected value.Then We have a new utility function of users after combining the new proposed parameter with the traditional utility function of users.The optimal target of users and company is presented next.We proposed a heuristic algorithm in order to get the optimal generation of utility company and optimal power demand of users.The algorithm can flatten the power generation of utility company and maximize the utility of users.Further,demand response management with multiple utility companies and multiple types of users is studied.The power price announced by utility companies for different type of users is different due to the different characteristic of users including residential users,commercial users and industrial users.Then we present the corresponding demand response model.Different users would determine the power demand and which utility company to purchase from based on the different power price of utility companies,while utility companies adjust their power price and supply according to the power demand of users.Then we design an iterative optimization algorithm to simplify and solve the complicated optimization problem.which can optimize utility of users and utility companies and meanwhile balance the power supply and demand.Finally we can get the optimal power production and price setting strategy of utility companies,and optimal power consumption strategy of users.