Demand response based on stackelberg game in smart grid

This paper presents a demand response scheme based on stackelberg game for smart grid. The interaction between energy provider and consumers is cast into a stackelberg game, where consumers compete with each other by choosing the optimal power consumptions, while energy provider optimizes the profit by setting the optimal electricity price. Then, we derive the optimal solutions of the stackelberg game through backward induction. Simulation results show the efficiency of the proposed demand response scheme.