Distributed Home Energy Management System With Storage in Smart Grid Using Game Theory

In this paper, the problem of distributed home energy management system with storage (<bold><italic>HoMeS</italic></bold>) in a coalition, which consists of multiple microgrids and multiple customers, is studied using the <bold><italic>multiple-leader–multiple-follower Stackelberg game</italic></bold> theoretic model—a multistage and multilevel game. The microgrids, which act as the leaders, need to decide on the minimum amount of energy to be generated with the help of a central energy management unit and the optimum price per unit energy to maximize their profit. On the other hand, the customers, which act as the followers, need to decide on the optimum amount of energy to be consumed, including the energy to be requested for storage. Using the proposed distributed scheme, i.e., <bold><italic>HoMeS</italic></bold>, the earned profit of the grid improves up to 55%, and the customers consume almost 30.79% higher amount of energy, which, in turn, increases the utilization of the generated energy by the microgrids.