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An economical way to manage demand-side energy storage systems in the smart grid is proposed by using an H∞ design. The proposed design can adjust the stored energy state economically according to the price signal, while tolerating a certain degree of system uncertainty and having physical constraints on the stored energy level satisfied. Roughly speaking, batteries in the proposed design are charged during a low-price period while being discharged during a high-price period for cost control. Simulations show that the proposed energy storage system can meet the real-time power demand and save money in the long term in contrast to energy storage systems using constant-state schemes.