A Stackelberg game for multi-period demand response management in the smart grid

Khaled Alshehri, Ji Liu, Xudong Chen, Tamer Başar

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This paper studies a multi-period demand response management problem in the smart grid where multiple utility companies compete among themselves. The user-utility interactions are modeled by a noncooperative game of a Stackelberg type where the interactions among the utility companies are captured through a Nash equilibrium. It is shown that this game has a unique Stackelberg equilibrium at which the utility companies set prices to maximize their revenues (within a Nash game) while the users respond accordingly to maximize their utilities subject to their budget constraints. Closed-form expressions are provided for the corresponding strategies of the users and the utility companies. It is shown that the multi-period scheme, compared with the single-period case, provides more incentives for the users to participate in the game. A necessary and sufficient condition on the minimum budget needed for a user to participate is provided.

Original languageEnglish (US)
Title of host publication54rd IEEE Conference on Decision and Control,CDC 2015
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages5889-5894
Number of pages6
ISBN (Electronic)9781479978861
DOIs
StatePublished - Feb 8 2015
Event54th IEEE Conference on Decision and Control, CDC 2015 - Osaka, Japan
Duration: Dec 15 2015Dec 18 2015

Publication series

NameProceedings of the IEEE Conference on Decision and Control
Volume54rd IEEE Conference on Decision and Control,CDC 2015
ISSN (Print)0743-1546
ISSN (Electronic)2576-2370

Other

Other54th IEEE Conference on Decision and Control, CDC 2015
Country/TerritoryJapan
CityOsaka
Period12/15/1512/18/15

Keywords

  • Companies
  • Energy storage
  • Games
  • Load management
  • Optimization
  • Reliability
  • Smart grids

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Modeling and Simulation
  • Control and Optimization

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