Demand-Side Energy Management Based on Nonconvex Optimization in Smart Grid

Demand-side energy management is used for regulating the consumers' energy usage in smart grid. With the guidance of the grid's price policy, the consumers can change their energy consumption in response. The objective of this study is jointly optimizing the load status and electric supply, in order to make a tradeoff between the electric cost and the thermal comfort. The problem is formulated into a nonconvex optimization model. The multiplier method is used to solve the constrained optimization, and the objective function is transformed to the augmented Lagrangian function without constraints. Hence, the Powell direction acceleration method with advance and retreat is applied to solve the unconstrained optimization. Numerical results show that the proposed algorithm can achieve the balance between the electric supply and demand, and the optimization variables converge to the optimum.