A differential game approach to distributed demand side management in smart grid

Quanyan Zhu, Zhu Han, T. Başar

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

Abstract

Smart grid is a visionary user-centric system that will elevate the conventional power grid system to one which functions more cooperatively, responsively, and economically. Dynamic demand side management is one of the key issues that enable the implementation of smart grid. In this paper, we use the framework of dynamic games to model the distribution demand side management. The market price is characterized as the dynamic state using a sticky price model. A two-layer optimization framework is established. At the lower level, for each player (such as one household), different appliances are scheduled for energy consumption. At the upper level, the dynamic game is used to capture the interaction among different players in their demand responses through the market price. We analyze the N-person nonzero-sum stochastic differential game and characterize its feedback Nash equilibrium. A special case of homogeneous users is investigated in detail and we provide a closed-form solution for the optimal demand response. From the simulation results, we demonstrate the use of demand response strategy from the game-theoretic framework and study the behavior of market price and demand responses to different parameters.

Original languageEnglish (US)
Title of host publication2012 IEEE International Conference on Communications, ICC 2012
Pages3345-3350
Number of pages6
DOIs
StatePublished - Dec 1 2012
Event2012 IEEE International Conference on Communications, ICC 2012 - Ottawa, ON, Canada
Duration: Jun 10 2012Jun 15 2012

Publication series

NameIEEE International Conference on Communications
ISSN (Print)1550-3607

Other

Other2012 IEEE International Conference on Communications, ICC 2012
CountryCanada
CityOttawa, ON
Period6/10/126/15/12

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ASJC Scopus subject areas

  • Computer Networks and Communications
  • Electrical and Electronic Engineering

Cite this

Zhu, Q., Han, Z., & Başar, T. (2012). A differential game approach to distributed demand side management in smart grid. In 2012 IEEE International Conference on Communications, ICC 2012 (pp. 3345-3350). [6364562] (IEEE International Conference on Communications). https://doi.org/10.1109/ICC.2012.6364562