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A dynamic game behavior: Demand side management based on utility maximization with renewable energy and storage integration

In the smart grid environment, customers are offered to participate more actively in the electricity energy market with the promise of demand side management (DSM) with distributed energy resources and energy storage. By utilizing proper incentive scheme such as dynamic pricing, numerous objectives could be achieved so that it could benefit both the utility companies and consumers. In this paper, a smart grid environment with multiple users with renewable energy and energy storage devices equipped with smart meters and energy management devices (EMD) is considered. We present a fast distributed algorithm for demand-side management based on the social welfare maximization problem under the dynamic pricing scheme. We also introduced the dynamic game to illustrate the interaction between the utility company and its subscribers, which eventually leads to an equilibrium point. The simulation result validates that the proposed demand side management framework with real time pricing has an effective impact on reducing the peak demand as well as utilizing the renewable energy resources and energy storage devices.