Optimal Real-Time Pricing under Load Uncertainty based on Utility Maximization for Smart Grid

Implementation of real-time communication systems enables real-time pricing for smart grid operation. Recently, [1] proposed a utility framework and a distributed algorithm for real-time pricing. We extend this work to include the effect from load uncertainty. We derive the optimal prices under different types of load uncertainty and show how it influences power consumption and generating capacity. Simulation results indicate power consumption back-offs when there is load uncertainty and provide comparisons among the load uncertainty models.