Optimized Demand Side Management for Competitive HetNets Powered by Smart Grid

Abstract

This paper investigates the interactions between multiple heterogeneous cellular networks and energy retailers existing in the smart grid. The energy procurement decision of cellular networks is optimized while considering dynamic energy pricing and pollution levels of energy sources. The objective of the optimization problem is to maximize a utility metric based on mobile operators’ profits while limiting the amount of CO2 emitted by all networks. In this study, we derive closed-form expressions of the optimal energy to procure from each retailer in order to power the marcocell and small cell base stations. The derived solutions depend on the retailer pricing function and the optimized metrics. Three metrics reflecting the degree of fairness among mobile operators are considered. Selected simulations investigate the behavior of different actors in the energy procurement decision. Results show a significant CO2 emissions reduction can be achieved thanks to the optimized demand side management from smart grid.