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Real‐Time Pricing‐Based Scheduling Strategy in Smart Grids: A Hierarchical Game Approach

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Listed:
  • Jie Yang
  • Guoshan Zhang
  • Kai Ma

Abstract

This paper proposes a scheduling strategy based on real‐time pricing in smart grids. A hierarchical game is employed to analyze the decision‐making process of generators and consumers. We prove the existence and uniqueness of Nash equilibrium and utilize a backward induction method to obtain the generation and consumption strategies. Then, we propose two dynamic algorithms for the generators and consumers to search for the equilibrium in a distributed fashion. Simulation results demonstrate that the proposed scheduling strategy can match supply with demand and shift load away from peak time.

Suggested Citation

  • Jie Yang & Guoshan Zhang & Kai Ma, 2014. "Real‐Time Pricing‐Based Scheduling Strategy in Smart Grids: A Hierarchical Game Approach," Journal of Applied Mathematics, John Wiley & Sons, vol. 2014(1).
    • Handle: RePEc:wly:jnljam:v:2014:y:2014:i:1:n:329656
    DOI: 10.1155/2014/329656
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    References listed on IDEAS

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    1. Spees, Kathleen & Lave, Lester B., 2007. "Demand Response and Electricity Market Efficiency," The Electricity Journal, Elsevier, vol. 20(3), pages 69-85, April.
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