Incentive cloud-based demand response program using game theory in smart grid

The demand for more electricity is growing with the increasing trend in using more electrical devices. Therefore besides allocating more sources of energy to generate electricity, many utility companies try hard to make sure that they can manage the demand for more electricity by the adaptation of well-established demand response program. Demand response programs bring proved benefit to grid operation and yields market efficiency by incorporating customers' decision. In this paper, we propose an incentive cloud-based demand response program utilizing game theory in customers' side. In contrast to other methods which include a bargaining process between utility and customers, the proposed model uses resource allocation to offer a fair incentive price to each user. In this manner, we encourage users to take part in incentive-based demand response program. The utility will also profit from this process by allocating price individually to each user. Numerical results confirm that the proposed work is successful to achieve its goals.