Distributed Demand Side Management with Energy Storage in Smart Grid

Demand-side management, together with the integration of distributed energy storage have an essential role in the process of improving the efficiency and reliability of the power grid. In this paper, we consider a smart power system in which users are equipped with energy storage devices. Users will request their energy demands from an energy provider who determines their energy payments based on the load profiles of users. By scheduling the energy consumption and storage of users regulated by a central controller, the energy provider tries to minimize the square Euclidean distance between the instantaneous energy demand and the average demand of the power system. The users intend to reduce their energy payment by jointly scheduling their appliances and controlling the charging and discharging process for their energy storage devices. We apply game theory to formulate the energy consumption and storage game for the distributed design, in which the players are the users and their strategies are the energy consumption schedules for appliances and storage devices. Based on the game theory setup and proximal decomposition, we also propose two distributed demand side management algorithms executed by users in which each user tries to minimize its energy payment, while still preserving the privacy of users as well as minimizing the amount of required signaling with the central controller. In simulation results, we show that the proposed algorithms provide optimality for both energy provider and users.