Representative DR Algorithms in Smart Grid 327
Step 4: Repeat Step 1 to Step 3 for next period.
The authors have proved that this method converges to a small neighbor-
hood of solution of (11.24).
Both results in the two literatures above achieve a market equilibrium
point which satisfies the following criteria: 1) maximizing welfare for each
generating unit; 2) maximizing profit for every individual consumer; 3) max-
imizing social welfare.
Clearly, market equilibrium is significant. Another research group discusses
two analogous market models in [26]. One considers demand shaping by sub-
jecting customers to real-time spot prices and incentivizing them to shift or
even reduce their load, which is similar to the technique in [22]. The other
designs a