ABSTRACT
This chapter provides an efficient real-time pricing (RTP) scheme to reduce the peak-to-average load ratio and maximize each user’s payoff and the retailer’s profit in the meantime, both with and without taking account of renewable energy integration. It considers time-varying prices, with the objective to reduce peak-to-average load ratio, increase the retailer’s profit, and maximize the users’ payoffs. The chapter presents the problems considered by users and retailers, respectively. It introduces a novel ex-ante RTP scheme for the future smart grid, where the real-time prices are determined at the beginning of energy scheduling horizon. While renewable energy offers a cheaper and cleaner energy supply, it imposes great challenges on designing the RTP scheme due to the stochastic nature of most renewable energy sources. The chapter argues that an end user is integrated with renewable energy generation units, and is capable of perfectly predicting the renewable energy generation.
