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A smart grid is an advancement in electrical grid which includes a variety of operational and energy measures. To utilize energy distribution in an ecient manner, demand side management has become the fore-runner. In our research paper, we use game theory as a tool to model our system as a Stackelberg game. We make use of dierent energy sources like solar energy, energy from battery and energy from the provider to run appliances of a subscriber. We consider the scenario where the subscriber can give excess energy that is generated, back to the grid, thereby reducing the load on the grid during peak hours. We design a pricing scheme to calculate the utilities of the subscriber and the provider and show how our model maximizes the utility of the entire system, thereby showing the existence of a Nash equilibrium.

A Game Theoretic Approach to Demand Side Management in Smart Grid with Multiple Energy Sources and Storage