The Formulation of Subsidy Price for Demand Response Based on Game Theory

At present, how to formulate a reasonable subsidy price for demand response in China's power grid is an urgent issue to be solved. This paper establishes the revenue models of users and power grid in the context of demand response. Based on the revenue models, this paper also establishes a Stackelberg game model to characterize the game behavior of power grid and users on demand response subsidy price. In addition, the method of solving the Stackelberg game model established is proposed, and a case is given to calculate the optimal unit power subsidy price for demand response.