Stackelberg Game Theory Based Energy Management Systems in the Presence of Renewable Energy Sources

The game theory concept has been adapted for energy management between energy producers and consumers in the presence of renewable energy sources (RES) and electric vehicles (EVs). The objective of the paper is to increase the penetration of renewable energy sources and EVs by the Stackelberg game theory model with real-time pricing. RES are the energy generation sources located near load centers to manage the demand of consumers. The primary objective of EV is transportation, but for managing the energy demand, EV participate in grid operations as a back up source of energy. EV are charged during off-peak hours and discharged to the grid during peak hours. Consumers benefited in terms of higher payoffs to supply energy during peak hours. To increase the payoffs, consumers can shift their appliance operation from high price duration to low price duration and create a new peak energy consumption. To maintain the balance between consumers and utility, an optimization tool is essential. The Stackelberg game theory model is a one leader and N followers' game, the leader first declares the energy price and the follower respond by selecting their best response for energy consumption. The leader can update its strategy again by considering the follower best response to obtain maximum benefits. The process to achieve the best response of the follower and leader is called the Stackelberg nash equilibrium. Objective of energy producers is to supply maximum energy through renewable energy sources and the use of EVs as storage units. The prime objective of consumers is to minimize energy tariff by scheduling the appliances.