Real-Time Pricing for Demand Response in Smart Grid Based on Alternating Direction Method of Multipliers

Algorithm 1

Distributed optimization algorithm based on ADMM-GBS.

Step 1. When , for each user , initializes , and energy provider announces

to each user.

Step 2. In time slot , each user does the following:

  Updates the value of by (19);

  Solves local problem (16) to obtain ;

  Broadcasts to each user and energy provider.

Step 3. In time slot , energy provider does the following:

  Updates via (20);

  Receives from all the users, solves problem (17) to get , updates the value of by (18);

  Broadcasts and to the users.

Step 4. Energy provider corrects via (21) to get .

Step 5. If stop criteria (22) are satisfied, algorithm stops. Otherwise, repeats Steps to .