Game theory-based bi-level pricing scheme for smart grid scheduling control algorithm

Abstract

Smart grid (SG) technology is now elevating the conventional power grid system to one that functions more cooperatively, responsively, and economically. When applied in an SG the demand side management (DSM) technique can improve its reliability by dynamically changing electricity consumption or rescheduling it. In this paper, we propose a new SG scheduling scheme that uses the DSM technique. To achieve effective SG management, we adopt a mixed pricing strategy based on the Rubinstein-Stahl bargaining game and a repeated game model. The proposed gamebased pricing strategy provides energy routing for effective energy sharing and allows consumers to make informed decisions regarding their power consumption. Our approach can encourage consumers to schedule their power consumption profiles independently whileminimizing their payment and the peak-to-average ratio (PAR). Through a simulation study, it is demonstrated that the proposed scheme can obtain a better performance than other existing schemes in terms of power consumption, price, average payment, etc.