Demand Side Management in Smart Grids: A Stackelberg Multi Period Multi Provider Game

In the smart grid context, with the growth of the energy demand, Demand Side Management (DSM) is a good solution to balance the power consumption and the power generation. Its main goal is to satisfy the two essential actors: the providers and the consumers, in order to improve the reliability and the efficiency of the smart grid. With the integration of renewable energies, the number of providers increases leading to introducing many challenges in the load control. In this paper, we propose a novel real time pricing algorithm based on Stackelberg game. It defines the consumers' energy consumption and the providers' price by taking advantages of the bidirectional communication infrastructure in such way to minimize the consumers' bills and maximize the providers' profit; these two concepts become nowadays a portfolio to work on. In this game, different active consumers (i.e. prosumers) negotiate with different energy providers. The performance of our algorithm is proved through extensive simulations. The coherence between the prices/demands deal is shown with two scenarios compared to the literature.