A Game Theory Approach to Demand Side Management in Smart Grids

Hajj, Nadine; Awad, Mariette

doi:10.1007/978-3-319-11310-4_70

Cited by 7 publications

(12 citation statements)

References 9 publications

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“…Remark 1. Note that in Definition 1, in the case where the followers' problem admits a unique solution x * , the second condition in (6)…”

Section: A Stackelberg Game Formulationmentioning

confidence: 99%

“…The main drawback of these works [4], [6]- [13] is the assumption that consumers are fully rational and will thus choose their strategy in accordance to classical game theory (CGT). In practice, as observed by behavioral experimental studies [14], human players can significantly deviate from the rational principles of CGT, when faced with the uncertainty of probabilistic outcomes.…”

Section: Introductionmentioning

confidence: 99%

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Managing Price Uncertainty in Prosumer-Centric Energy Trading: A Prospect-Theoretic Stackelberg Game Approach

Rahi

Etesami

Saad

et al. 2019

IEEE Trans. Smart Grid

148

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In this paper, the problem of energy trading between smart grid prosumers, who can simultaneously consume and produce energy, and a grid power company is studied. The problem is formulated as a single-leader, multiple-follower Stackelberg game between the power company and multiple prosumers. In this game, the power company acts as a leader who determines the pricing strategy that maximizes its profits, while the prosumers act as followers who react by choosing the amount of energy to buy or sell so as to optimize their current and future profits. The proposed game accounts for each prosumer's subjective decision when faced with the uncertainty of profits, induced by the random future price. In particular, the framing effect, from the framework of prospect theory (PT), is used to account for each prosumer's valuation of its gains and losses with respect to an individual utility reference point. The reference point changes between prosumers and stems from their past experience and future aspirations of profits. The followers' noncooperative game is shown to admit a unique pure-strategy Nash equilibrium (NE) under classical game theory (CGT) which is obtained using a fully distributed algorithm. The results are extended to account for the case of PT using algorithmic solutions that can achieve an NE under certain conditions. Simulation results show that the total grid load varies significantly with the prosumers' reference point and their loss-aversion level. In addition, it is shown that the power company's profits considerably decrease when it fails to account for the prosumers' subjective perceptions under PT.

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“…Remark 1. Note that in Definition 1, in the case where the followers' problem admits a unique solution x * , the second condition in (6)…”

Section: A Stackelberg Game Formulationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Managing Price Uncertainty in Prosumer-Centric Energy Trading: A Prospect-Theoretic Stackelberg Game Approach

Rahi

Etesami

Saad

et al. 2019

IEEE Trans. Smart Grid

148

View full text Add to dashboard Cite

show abstract

“…Though a decentralized system as in [82] might provide privacy benefits to its users, issues such as communication complexity and deployment considerations may result in a centralized system being preferable in practice. Hajj and Awad (2015) [81] describe a centralized system that uses game-theoretic methods to provides optimum scheduling. This comes at the cost of forcing users to reveal their projected demand to the supplier.…”

Section: G Smart Gridsmentioning

confidence: 99%

Game Theoretical Modelling of Network/Cybersecurity

et al. 2019

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Game theory is an established branch of mathematics that offers a rich set of mathematical tools for multi-person strategic decision making that can be used to model the interactions of decision makers in security problems who compete for limited and shared resources. This article presents a review of the literature in the area of game theoretical modelling of network/cybersecurity and identifies a number of challenges in this area that need to be addressed. INDEX TERMS Cyberspace, mathematical model, optimization methods, cybersecurity, game theory, network security. AZHAR IQBAL received the B.Sc. (Hons.

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“…Most researchers are engrossed in developing efficient algorithms to minimize the generation costs, either directly or indirectly. In the literature, various approaches have been utilized to develop efficient algorithms in order to minimize the electricity costs [82,108,116,[129][130][131][132][133][134][135][136][137][138][139]. These approaches include the game theoretic approach, different pricing approaches, etc.…”

Section: Cost Minimization By Employing Efficient Dsm Schemesmentioning

confidence: 99%

A Compendium of Performance Metrics, Pricing Schemes, Optimization Objectives, and Solution Methodologies of Demand Side Management for the Smart Grid

Ahmad

Naeem

et al. 2018

Energies

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The curtailing of consumers’ peak hours demands and filling the gap caused by the mismatch between generation and utilization in power systems is a challenging task and also a very hot topic in the current research era. Researchers of the conventional power grid in the traditional power setup are confronting difficulties to figure out the above problem. Smart grid technology can handle these issues efficiently. In the smart grid, consumer demand can be efficiently managed and handled by employing demand-side management (DSM) algorithms. In general, DSM is an important element of smart grid technology. It can shape the consumers’ electricity demand curve according to the given load curve provided by the utilities/supplier. In this survey, we focused on DSM and potential applications of DSM in the smart grid. The review in this paper focuses on the research done over the last decade, to discuss the key concepts of DSM schemes employed for consumers’ demand management. We review DSM schemes under various categories, i.e., direct load reduction, load scheduling, DSM based on various pricing schemes, DSM based on optimization types, DSM based on various solution approaches, and home energy management based DSM. A comprehensive review of DSM performance metrics, optimization objectives, and solution methodologies is’ also provided in this survey. The role of distributed renewable energy resources (DERs) in achieving the optimization objectives and performance metrics is also revealed. The unpredictable nature of DERs and their impact on DSM are also exposed. The motivation of this paper is to contribute by providing a better understanding of DSM and the usage of DERs that can satisfy consumers’ electricity demand with efficient scheduling to achieve the performance metrics and optimization objectives.

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A Game Theory Approach to Demand Side Management in Smart Grids

Cited by 7 publications

References 9 publications

Managing Price Uncertainty in Prosumer-Centric Energy Trading: A Prospect-Theoretic Stackelberg Game Approach

Managing Price Uncertainty in Prosumer-Centric Energy Trading: A Prospect-Theoretic Stackelberg Game Approach

Game Theoretical Modelling of Network/Cybersecurity

A Compendium of Performance Metrics, Pricing Schemes, Optimization Objectives, and Solution Methodologies of Demand Side Management for the Smart Grid

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