Modeling Competition Among Consumers in Smart Grid by Using Game Theory

Network constraints such as an overload of equipments and violations of operational guidelines and problems related to the electricity market, such as facing with high spot prices often occur during off peak times that small customer plays an important role on it. Thus, attention to the consumer and creating necessary conditions for their participation in the electricity market can be an effective tool.With the development of infrastructures and expansion of advanced metering systems that form the foundation of the smart grid, consumers control and monitoring in real-time, continuous or periodic, and this can help to participation of customer in the power market.In this regard, demand response programs can have a significant influence and importance. For this purpose the exchange market DR programs for participation of consumers and competition among, have been proposed.For this purpose, we used game theory framework with a dynamic Nash Equilibrium (NE) and supply function equilibrium (SFE) pricing model to modeling competitions among customers. A non-cooperative game with complete information, and a nine-bus IEEE test system is employed to illustrate the proposed method.

Keywords:

Bidding strategy , Demand Response Programs , Game Theory