A Game Theory Approach and Tariff Strategy for Demand Side Management

Demand side management in smart grid environment with smart meters, renewable energy sources, different kind of consumers etc. is a complex problem. To optimize the problem game theory methodology is used. Game theory approach provide win-win situation between consumers and utilities. Objective of the paper is to find the Nash equilibrium between consumer and utility when utility is supplied through green energy sources. Mathematical modeling of consumption and utilization derived a Nash equilibrium point where consumer and utility both get maximum payoffs. Results shows that energy consumption cost is reduce by applying game theory approach.