Game Theory for Smart Grid

Game Theory for Smart Grid

Copyright: © 2014 |Pages: 12
DOI: 10.4018/978-1-4666-6050-2.ch005

Abstract

A smart grid is a modernized electrical grid that uses analog or digital information and communications technology to gather and act on information, such as information about the behaviors of suppliers and consumers, in an automated fashion to improve the efficiency, reliability, economics, and sustainability of the production and distribution of electricity. Therefore, smart grid is an evolved grid system that manages electricity demand in a sustainable, reliable, and economic manner, built on advanced infrastructure and tuned to facilitate the integration of all involved. Roll-out of smart grid technology also implies a fundamental re-engineering of the electricity services industry, although typical usage of the term is focused on the technical infrastructure. This chapter explores this idea.
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Game Models For Demand Side Management

Controlling and influencing energy demand can reduce the overall peak load demand, reshape the demand profile, and increase the grid sustainability by reducing the overall cost and carbon emission levels. Therefore, demand side management is an important function in energy management of the future smart grid. Efficient demand side management can potentially avoid the construction of an under-utilized electrical infrastructure in terms of generation capacity, transmission lines and distribution networks (Figure 1). Most conventional demand-side management approaches for SG mainly focus on the interactions between a utility company and its customers (Fadlullah, 2011).

Figure 1.

Demand side management

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