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A Stackelberg game theoretical approach for demand response in smart grid

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Abstract

Smart grids enable greater customer participation by which the customers are encouraged to reshape their daily energy consumption pattern for the financial incentives, generally known as demand response (DR) programs. The demand response programs play an important key in improving grid stability by reducing the peak load and alleviating the deviation between the demand and supply. In this approach, we propose an optimization-based energy consumption scheme for customers. We also model the relationship between the service provider and end user as a Stackelberg game. We provide an equilibrium analysis between the end user and service provider for the proposed optimization problems. Using simulation studies we show that the peak load is reduced after the optimization and the deviation between the planned supply and demand has been reduced to greater extent. The proposed optimization algorithm is also shown to reduce user’s monthly electricity bills.

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Authors and Affiliations

  1. PSG College of Technology, Coimbatore, India

    Geetha Sivanantham & Srivatsun Gopalakrishnan

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  1. Geetha Sivanantham
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  2. Srivatsun Gopalakrishnan
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Correspondence to Geetha Sivanantham.

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Sivanantham, G., Gopalakrishnan, S. A Stackelberg game theoretical approach for demand response in smart grid. Pers Ubiquit Comput 24, 511–518 (2020). https://doi.org/10.1007/s00779-019-01262-9

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  • DOI: https://doi.org/10.1007/s00779-019-01262-9

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