The real-time pricing optimization model of smart grid based on the utility function of the logistic function

Yuanyuan Li, Junxiang Li, Jianjia He and Shuyuan Zhang

Energy, 2021, vol. 224, issue C

Abstract: The utility function is very significant for solving the real-time pricing problem of smart grid. Based on the Logistic function, a new utility function is constructed to satisfy four properties of the utility function. In addition, from the perspective of social welfare, the real-time pricing optimization model of smart grid is established. By using the KKT conditions and the improved Fischer-Burmerister smoothing function, the optimization model is transformed into a smoothing equations problem and the smoothing Newton algorithm is used to obtain the optimal solution of the problem. The nonsingularity of the Jacobian matrix and the global convergence of the algorithm are proved. The simulation results show that, compared with previous quadratic and logarithmic utility functions, the new utility function can not only reduce the user’s electricity consumption and the supplier’s cost can but also improve the user’s utility and the total social welfare, which also indicates that the new utility function is effective in establishing the real-time pricing model of smart grid. Furthermore, the iteration times of several algorithms to solve the real-time pricing problem of smart grid are compared, which showed that the convergence rate of the smoothing Newton algorithm is very fast.

Keywords: Real-time pricing; new utility function; Logistic function; Smoothing Newton algorithm; KKT conditions; Smart grid (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:224:y:2021:i:c:s0360544221004217

DOI: 10.1016/j.energy.2021.120172

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