Dynamic pricing for smart grid with reinforcement learning

Byung Gook Kim, Yu Zhang, Mihaela Van Der Schaar, Jang Won Lee

Research output: Chapter in Book/Report/Conference proceedingConference contribution

12 Citations (Scopus)

Abstract

In the smart grid system, dynamic pricing can be an efficient tool for the service provider which enables efficient and automated management of the grid. However, in practice, the lack of information about the customers' time-varying load demand and energy consumption patterns and the volatility of electricity price in the wholesale market make the implementation of dynamic pricing highly challenging. In this paper, we study a dynamic pricing problem in the smart grid system where the service provider decides the electricity price in the retail market. In order to overcome the challenges in implementing dynamic pricing, we develop a reinforcement learning algorithm. To resolve the drawbacks of the conventional reinforcement learning algorithm such as high computational complexity and low convergence speed, we propose an approximate state definition and adopt virtual experience. Numerical results show that the proposed reinforcement learning algorithm can effectively work without a priori information of the system dynamics.

Original languageEnglish
Title of host publication2014 IEEE Conference on Computer Communications Workshops, INFOCOM WKSHPS 2014
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages640-645
Number of pages6
ISBN (Print)9781479930883
DOIs
Publication statusPublished - 2014
Event2014 IEEE Conference on Computer Communications Workshops, INFOCOM WKSHPS 2014 - Toronto, ON, Canada
Duration: 2014 Apr 272014 May 2

Publication series

NameProceedings - IEEE INFOCOM
ISSN (Print)0743-166X

Other

Other2014 IEEE Conference on Computer Communications Workshops, INFOCOM WKSHPS 2014
CountryCanada
CityToronto, ON
Period14/4/2714/5/2

All Science Journal Classification (ASJC) codes

  • Computer Science(all)
  • Electrical and Electronic Engineering

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    Kim, B. G., Zhang, Y., Van Der Schaar, M., & Lee, J. W. (2014). Dynamic pricing for smart grid with reinforcement learning. In 2014 IEEE Conference on Computer Communications Workshops, INFOCOM WKSHPS 2014 (pp. 640-645). [6849306] (Proceedings - IEEE INFOCOM). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/INFCOMW.2014.6849306