Optimal real-time pricing for unbalanced distribution grids with network constraints

Abstract

In this paper, a real-time pricing algorithm is described that allows different energy providers to share one common network, without violating the network constraints. We consider a smart grid equipped with a two-way communication system. Energy producers, system operator and end-users exchange information through the communication infrastructure in order to converge to the optimal power consumption schedules without violating network limitations. A distributed gradient algorithm automatically manages the interactions between the different agents. Customer behaviour is modelled by utility-functions, based on concepts from microeconomics. The proposed algorithm is applied to a 3-phase 4-wire radial grid.