Fair Autonomous Energy Consumption Scheduling Based on Game-Theoretic Approach For the Future Smart Grid

Demand-Side Management (DSM) programs are practical mechanisms to coordinate energy consumption to achieve the grid-wide objectives. While most of the prior works in the literature are successful in achieving power system optimality, i.e, minimizing the total system cost or minimizing the demand profile peak-to-average ratio, most of them ignore the significance of customers' role in achieving the system objectives. Devising a fair billing mechanism is of a major importance to incentivize customers to contribute to the system. In this paper, an optimal billing mechanism that charges customers fairly based on their power consumption while rewards them based on their commitment and contribution to achieve the optimal energy consumption scheduling is proposed. Simulation results confirm that the proposed mechanism can enhance the fairness level of the system while maintaining its optimality.