Z Baharlouei, M Hashemi

IEEE Transactions on Smart Grid 5 (2), 799-808

Demand side management (DSM) programs are designed to encourage users to shift the use of their non-critical appliances to off-peak hours. Autonomous DSM programs have recently been proposed to achieve this goal by coordinating the users' energy consumption, using smart meters. On the other hand, this objective can be achieved only when the users actively contribute in DSM programs. Devising a fair billing mechanism is important to encourage the users to keep their contribution in the programs to achieve system optimality in the sense of minimum cost of the system. Another important issue in implementing DSM programs is protecting the users' privacy which is short addressed in DSM literature. In this paper, we introduce the concept of fairness, optimality and privacy in DSM systems. Next, we introduce a class of optimal billing mechanisms. We propose a subclass of optimal billing mechanisms which …