Real-time pricing method for smart grid based on social welfare maximization model

With the applications of big data, the research of real-time pricing method for smart grid has become increasingly important. Based on the demand side management and the real-time pricing model, the social welfare 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 conditions, 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.