Tiered billing scheme for residential load scheduling with bidirectional energy trading

Byung Gook Kim, Shaolei Ren, Mihaela Van Der Schaar, Jang Won Lee

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

2 Citations (Scopus)


Future generation smart grids will allow customers to trade energy bidirectionally. Specifically, each customer will be able to not only buy energy from the aggregator during its peak hours but also sell its surplus energy during its off-peak hours. In these emerging energy trading markets, a key component will be the deployment of effective energy billing schemes which consider the customers residential load scheduling. In this paper, we consider a residential load scheduling problem with bidirectional energy trading. Compared with the previous work, in which customers are assumed to be obedient and agree to maximize the social welfare of the smart grid system, in this paper, we consider a non-collaborative approach, where consumers are self-interested. We model the energy scheduling problem as a non-cooperative game, where each customer determines its load scheduling and energy trading to maximize its own profit. In order to resolve the unfairness between heavy and light customers, we propose a novel tiered billing scheme that can control the electricity rates for customers according to their different energy consumption levels. We also propose a distributed energy scheduling algorithm that converges to the unique Nash equilibrium of the studied non-cooperative game. Through the numerical results, we study the impact of the proposed tiered billing scheme on the selfish customers' behavior and on their incentives to participate in the energy trading market.

Original languageEnglish
Title of host publication2013 Proceedings IEEE INFOCOM 2013
Number of pages6
Publication statusPublished - 2013
Event32nd IEEE Conference on Computer Communications, IEEE INFOCOM 2013 - Turin, Italy
Duration: 2013 Apr 142013 Apr 19

Publication series

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


Other32nd IEEE Conference on Computer Communications, IEEE INFOCOM 2013

All Science Journal Classification (ASJC) codes

  • General Computer Science
  • Electrical and Electronic Engineering


Dive into the research topics of 'Tiered billing scheme for residential load scheduling with bidirectional energy trading'. Together they form a unique fingerprint.

Cite this