Prioritizing Consumers in Smart Grid: Energy Management Using Game\n Theory

This paper explores an idea of demand-supply balance for smart grids in which\nconsumers are expected to play a significant role. The main objective is to\nmotivate the consumer, by maximizing their benefit both as a seller and a\nbuyer, to trade their surplus energy with the grid so as to balance the demand\nat the peak hour. To that end, a Stackelberg game is proposed to capture the\ninteractions between the grid and consumers, and it is shown analytically that\noptimal energy trading parameters that maximize customers utilities are\nobtained at the solution of the game. A novel distributed algorithm is proposed\nto reach the optimal solution of the game, and numerical examples are used to\nassess the properties and effectiveness of the proposed approach.\n