A Distributed Online Pricing Strategy for Demand Response Programs

Understand

We study a demand response problem from utility (also referred to as operator)'s perspective with realistic settings, in which the utility faces uncertainty and limited communication.

• Specifically, the utility does not know the cost function of consumers and cannot have multiple rounds of information exchange with consumers.
• We formulate an optimization problem for the utility to minimize its operational cost considering time-varying demand response targets and responses of consumers.
• We develop a joint online learning and pricing algorithm.