A new two-stage game framework for power demand/response management in smart grids

摘要

Most existing cost optimization solutions ignore the long-term benefits for the customer, which may reduce the efficiency of the demand response management (DRM). In addition, without a power balance constraint, the power generation and consumption optimization problems are solved separately, which may cause a huge waste in power production. This paper presents a two-stage game framework to model and analyze such problems. In the first stage, a Stackelberg game framework for the generators and utility company is proposed to solve the cost optimization problem for power generation. A unique Nash equilibrium (NE) is obtained, in which the utility company obtains the optimized power outputs with the first-mover advantage. In the second stage, an infinite repeated game framework is proposed to the customers. A Pareto-efficient power consumption guideline is achieved for the customers, in which no customer gains more by reducing others' benefits. Our numerical results have shown that, with the same power consumption, the proposed two-stage framework can raise the profit for the utility company up to 8 percent while reduce the summation of the customers' costs up to 10 percent.