A cosh-based smoothing Newton algorithm for the real-time pricing problem in smart grid

In a smart grid system, different types of electricity users such as residential, commercial and industrial have utility functions. This paper proposes nonlinear constrained optimization model for real-time pricing that maximizes the total utilities all user groups. A Karush–Kuhn–Tucker equation system is employed to solve model. However, it challenging task due complementary condition. To tackle challenge, cosh-based smoothing approximation function proposed substitute Subsequently, Newton algorithm developed new system. The global convergence local quadratic are proved. Numerical experiments performed test method compare solutions pricing, fixed time-of-use strategies applied in results show mechanism most suitable saving energy reducing peaks troughs consumption. also indicates effective use problem grid. We obtain supply–demand balance constraints