Balanced Interest Distribution in Smart Grid: A Nash Bargaining Demand Side Management Scheme

To maintain the interest of both energy supplier and demand side consumers in the electricity market, in this paper, we propose a Nash bargaining demand side management scheme that optimizes the demand loads to achieve a balanced interest distribution. We formulate the power distribution problem by the Nash bargaining framework, where the optimization objective, defined as social benefit, is product of the consumers' interests represented by the cost efficiency of power consumption, and the energy supplier's interest measured by its profit. Simulation results confirm the optimality of the proposed scheme in obtaining the social benefit and provide insights of maximizing the benefit as well as satisfaction level and on how the behaviors of the two sides impact on the interests.