A Comfort Based Game Theoretic Approach for Load Management in the Smart Grid

Stress stemming from increasing energy demands in residential areas can cause electric overloads, which will either destroy grid components or shorten the equipment´s life expectancy. To overcome this problem, residential load management has become essential. In this paper, we propose a comfort based smart load management algorithm to efficiently manage random and uncontrolled residential loads. Unlike most demand response programs, the proposed algorithm gives the user the choice to prioritize either comfort or savings. As a result, the end user´s comfort requirements and preferences are preserved. A game theoretic approach is used to formulate the energy consumption problem. Simulation results show that the algorithm achieves high cost savings and flattens the load while taking into account the user´s comfort. The algorithm is scalable, converges in acceptable times, preserves users´ privacy, and introduces a very limited amount of overhead in the system.