We consider a real-time demand response system in smart grid distribution to solve real-time pricing’s (RTP) total cost minimization problem. This problem has not yet to be discussed especially at the level of neighborhood area networks. While the available RTP-alike schemes are too stand-alone to solve all the problems systematically, this paper proposes a mathematical energy scheduling model for RTP demand response, and based on which, a distributed scheduling algorithm of energy consumption for total cost minimization is proposed. Simulations are conducted to find the minimum total cost under different sets of parameters.
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