Journal of Terahertz Science and Electronic Information Technology , Volume. 21, Issue 1, 112(2023)

Reinforcement Learning-based Optimizing Dynamic Pricing algorithm in smart grid

CAO Jun*, SUN Yingying, and ZHAO Hang
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    Dynamic pricing is one of the most effective ways to encourage customers to change their consumption pattern. Therefore, Reinforcement Learning-based Optimizing Dynamic Pricing(RLODP) algorithm is proposed for energy management in a hierarchical electricity market by considering both service provider's profit and customers' costs. Using Reinforcement Learning, the SP can adaptively determine the retail electricity price. Dynamic pricing problem is formulated as a discrete finite Markov Decision Process(MDP), and Q-learning is adopted to solve this decision-making problem. Simulation results show that the RLODP algorithm can reduce energy costs for customers, balance the energy supply and the demands in the electricity market.

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    CAO Jun, SUN Yingying, ZHAO Hang. Reinforcement Learning-based Optimizing Dynamic Pricing algorithm in smart grid[J]. Journal of Terahertz Science and Electronic Information Technology , 2023, 21(1): 112

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    Paper Information

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    Received: Apr. 28, 2020

    Accepted: --

    Published Online: Mar. 14, 2023

    The Author Email: Jun CAO (huxyu_82@sohu.com)

    DOI:10.11805/tkyda2020178

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