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Residential power scheduling for demand response in a smart grid is a complex task. The traditional methods aim to minimize consumption costs and maximize consumption payoffs. In this paper, a power scheduling algorithm based on cost efficiency for smart homes is proposed to improve consumers' consumption efficiency and satisfaction. In this proposed method, a definition of cost efficiency for residential power scheduling is introduced. Consumers' consumption costs are modelled based on electricity payments and users' discomfort. A pair of parameters for a trade-off between users' discomfort and their electricity payment is designed to model cost efficiency based on the consumer's preference. A power scheduling algorithm based on cost efficiency is developed by adopting a fractional programming approach. Four consumption models are analysed and discussed. The results show that this proposed method can effectively improve consumers' consumption efficiency and satisfaction while saving costs. It is shown that discomfort and additional payment can impact consumers' consumption behaviour and smooth their consumption profile curves.

Residential Power Scheduling Based on Cost Efficiency for Demand Response in Smart Grid