Privacy-Preserving Optimal Energy Management for Smart Grid With Cloud-Edge Computing

Optimal energy management of smart grids requires the information exchange between devices, which may disclose private information to the adversaries and further lead to great losses. To this end, this article considers the privacy-preserving optimal energy management problem for smart grids, which integrates both the power allocation of distributed energy resources on the supply side and the demand response of distributed load demands on the demand side. We first propose a cloud-edge computing structure of the smart grid and model the optimal energy management problem as the maximization problem of social welfare including the supply-side net benefit and the demand-side net utility, while maintaining the supply–demand balance and satisfying the operating constraints. A privacy-preserving average consensus algorithm is then developed, where each node sends the projected states to their neighbors to protect the privacy of the initial state. By applying the privacy-preserving average consensus algorithm, we propose a distributed privacy-preserving optimal energy management algorithm based on the generalized alternating direction method of multipliers. Finally, simulation examples are provided to validate the effectiveness of the proposed algorithms.