Matching supply with demand: A power control and real time pricing approach

Abstract This paper proposes a novel power control and real time pricing approach to match supply with demand for smart grid. We formulate a utility optimization problem to maximize the comfort level of the consumer under a reasonable payment. Then, we develop a power control and pricing algorithm to search for the optimal power consumption and price and give a distributed implementation method. Simulation results show that the algorithm has rapid convergence speed and keeps the balance between electricity supply and demand with real time pricing.