A State-Based Potential Game-Theoretic Approach for Massive Residential Consumers Participating in Demand Response

In order to realize massive residential consumers participating in demand response (DR), load aggregator (LA) can be employed to aggregate flexible loads. In this article, a distributed optimization approach based on state-based potential game (SPG) is proposed to describe the bidding behavior among LAs in day-ahead DR market for load shifting amount. Under the consideration of DR resource's energy consumption satisfaction, profit-oriented bidding decision problem is modeled from the perspective of individual LA and DR market. Basically, the establishment and proof of an SPG model is presented in details. Then, the best-strategy-response iterative algorithm is proposed to search for the Nash equilibrium in a distributed way. Finally, simulation is carried out to verify the efficiency and effectiveness of the proposed approach. Simulation results show that the whole profit of all LAs increases 0.15%, while the running time of the algorithm reduces 59.53% compared with the conventional algorithm in the noncooperative game.