Optimal Real Time Pricing Based on Income Maximization for Smart Grid

In this paper the interaction between several users with an energy provider is considered. The users are equipped with smart meters, and also smart meters are connected to the energy consumption controller unit. In this case a smart power infrastructure is formed that connects the users to the energy provider. This paper proposes a real time pricing algorithm based on income maximization for the future smart grid. As the main goal in demand response management (DRM) is to solve the energy provider´s benefit function optimization problem in a way that the satisfaction of consumers can also be achieved, in our proposed algorithm it is assumed that in the first step users optimize their consumption level by solving their welfare optimization problem and then based on the aggregation of users´ optimum demand the energy provider offers the new prices by solving its Income Based Objective function(IBO). Also by solving the IBO the optimum required capacity between two time slots is evaluated. Moreover, the effect of changing the number of users on the average load as well as the generating capacity has also been investigated over comparison with previously proposed Utility Based Objective function (UBO) algorithm.