DEMANDS: Distributed Energy Management Using Noncooperative Scheduling in Smart Grid

In this paper, the problem of energy scheduling and energy exchange between microgrids and customers is studied as a multi-leader multi-follower noncooperative Stackelberg game. The customers act as leaders, and decide the amount of required energy to he taken in each time slot. On the other hand, the microgrids act as the followers, which need to decide the price per unit energy based on the total requested energy by the connected customers. Using variational inequality, it is shown that the proposed distributed energy management using scheduling (DEMANDS) scheme has a Nash equilibrium solution, which is also socially optimal. In the proposed scheme, DEMANDS, each customer gets energy from any of the available microgrids within a coalition neither by paying higher price per unit energy, nor by waiting for the next time slot for service. The proposed scheme, DEMANDS, which enables the microgrids and the customers to reach the equilibrium state, is evaluated theoretically as well as through simulations.