GTES: An optimized game-theoretic demand-side management scheme for smart grid

Zubair Md Fadlullah, Duong Minh Quan, Nei Kato, Ivan Stojmenovic

Research output: Contribution to journalArticlepeer-review

169 Citations (Scopus)


Demand-side management in smart grids has emerged as a hot topic for optimizing energy consumption. In conventional research works, energy consumption is optimized from the perspective of either the users or the power company. In this paper, we investigate how energy consumption may be optimized by taking into consideration the interaction between both parties. We propose a new energy price model as a function of total energy consumption. Also, we propose a new objective function, which optimizes the difference between the value and cost of energy. The power supplier pulls consumers in a round-robin fashion and provides them with energy price parameter and current consumption summary vector. Each user then optimizes his own schedule and reports it to the supplier, which, in turn, updates its energy price parameter before pulling the next consumers. This interaction between the power company and its consumers is modeled through a two-step centralized game, based on which we propose our game-theoretic energy schedule (GTES) method. The objective of our GTES method is to reduce the peak-to-average power ratio by optimizing the users' energy schedules. The performance of the GTES approach is evaluated through computer-based simulations.

Original languageEnglish
Article number6552997
Pages (from-to)588-597
Number of pages10
JournalIEEE Systems Journal
Issue number2
Publication statusPublished - 2014 Jun


  • Energy optimization
  • game theory
  • real-time pricing
  • smart grid


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