Recursive Learning Based Smart Energy Management With Two-Level Dynamic Pricing Demand Response

Abstract

Due to dynamic characteristic of demand response and stochastic nature of power generation, it brings great challenge to smart energy management. In this paper, a demand response model is created with two-level dynamic pricing transaction among grid operator, service provider and customers, which also involves customers’ active participation with load shifting issue. To effectively control system load on the demand side, an improved deep reinforcement learning approach is proposed with a recursive least square (RLS) technique to deal with the dynamic pricing demand response problem, which accelerates the on-line training and optimization efficiency. On the power generation side, a probabilistic penalty-based boundary intersection (PBI) based multi-objective optimization algorithm is improved to optimize the economic cost, emission rate and statistic voltage stability index (SVSI) simultaneously with generated stochastic scenarios, which can ensure energy conservation and environmental protection, as well as system security. The case results reveal that the proposed two-level optimization strategy successfully deals with energy management with dynamic pricing demand response.Note to Practitioners—This paper is motivated by solving stochastic energy management issue of isolated power system with dynamic pricing demand response. Those existing methods merely focus on the load demand or power generation side, and the methods for demand response issue lacks efficient on-line learning ability, while this work proposes a recursive least square based deep reinforcement learning approach to tackle with the two-level dynamic pricing demand response issue, scenario based PBI multi-objective optimization is proposed to solve the power dispatch issue on power generation side, and the numerical analysis results suggest that the proposed optimization strategy can deal with the whole energy management issue well. The future work will focus on the dynamic power-load coordination in the energy management issue.