REAL-TIME PRICING METHOD FOR SMART GRID BASED ON SOCIAL WELFARE MAXIMIZATION MODEL

With the applications of big data, the research of real-time pric-ing method for smart grid has become increasingly important. Based on the demand side management and the real-time pricing model, the social wel-fare maximization model of smart grid is considered. We transform it by Karush-Kuhn-Tucker condition, then the social welfare maximization model is transformed into a nonsmooth equation by Fischer-Burmeister function. Then, taking advantage of simple calculation and small storage, we propose a new smoothing conjugate gradient method to solve real-time pricing problem for smart grid based on the social welfare maximization. Under general condi-tions, the global convergence of the new proposed method is proved. Finally, the numerical simulation results show the effectiveness of the proposed method for solving the real-time pricing problems for smart grid based on the social welfare maximization.