Diversion hypothesis has ended up a valuable way to portray and make strides complicated connections in numerous zones, such as savvy framework vitality administration. When it comes to savvy lattice operations, the truth that vitality generation, exchange, and utilize are all energetic and separated makes huge issues that are difficult to fathom with standard controlled strategies. This outline looks at how amusement hypothesis can be utilized to assist individuals make better decisions and make the leading utilize of assets in savvy framework settings. The most objective is to figure out how game-theoretic models can offer assistance with productive vitality management by looking at how diverse parties, like clients, providers, and lattice administrators, will act in numerous circumstances. Regularly, these bunches have objectives that are at chances with each other, like minimizing costs, making as much cash as possible, and ensuring the environment. Amusement hypothesis lets us see at these trades as in case they were arranged recreations, with each individual attempting to get the foremost out of the diversion by altering their claim choices and the activities of others. Key thoughts from diversion hypothesis, like Nash harmony, agreeable and non-cooperative diversions, and component plan, are utilized to come up with keen framework operations procedures that are both reasonable and proficient. Nash balance could be a key thought for a arrangement where no individual can pick up by changing their arrange on their possess. This provides security in independent decision-making. In addition, the abstract talks about a number of case studies and uses where game theory has been used successfully in smart grids. Some of these are demand response programs, energy trade markets, and making the best use of integrating green energy. By making these events into games, parties can plan for and deal with problems like grid instability, price changes, and traffic jams. The outline also talks about problems that are still being researched and where the field might go in the future. These include making game-theoretic models work on large-scale smart grid networks, using real-time data analytics to help people make better decisions, and using machine learning to make predictions more accurate.