Abstract
We consider a future energy demand network that consists of one utility company and N customers. The utility company purchases energy and sells them to the consumers. In order to optimize the energy consumption the utility company and consumers exchange information and make a schedule of consumption patterns of the whole day previously. In a competitive society selfish consumers' optimization of their own benefits does not generally guarantee maximization of whole network's benefit; in such a case, we say that the network is under the uncertain information environment. We formulate a generic dynamic LQ energy demand network under an uncertain information environment, and propose an optimization-based mechanism that requires the utility company to design an incentive cost (transfer cost) using the VCG mechanism, so that selfish and optimal schedulings of N customers based on their own benefits leads to the whole network's maximum benefit. We demonstrate efficiency of the proposed method by using a numerical example of dynamic 10 customers model.
