Advanced Demand Side Management for the Future Smart Grid Using Mechanism Design

In the future smart grid, both users and power companies can potentially benefit from the economical and environmental advantages of smart pricing methods to more effectively reflect the fluctuations of the wholesale price into the customer side. In addition, smart pricing can be used to seek social benefits and to implement social objectives. To achieve social objectives, the utility company may need to collect various information about users and their energy consumption behavior, which can be challenging. In this paper, we propose an efficient pricing method to tackle this problem. We assume that each user is equipped with an energy consumption controller (ECC) as part of its smart meter. All smart meters…