A Critical Assessment of Cost-Based Nash Methods for Demand Scheduling in Smart Grids

TL;DR

This paper critically evaluates the effectiveness of cost-based Nash equilibrium methods for demand scheduling in smart grids, questioning their efficiency and practical viability in demand-side management.

Contribution

It provides a critical assessment of the game-theoretic Nash methods for demand scheduling, challenging their assumed advantages in smart grid DSM.

Findings

Nash-based demand scheduling methods may not always lead to optimal energy efficiency.

The paper questions the widespread adoption of game-theoretic approaches in DSM.

Alternative strategies might be necessary for effective demand management.

Abstract

Demand-side management (DSM) is becoming an increasingly important component of the envisioned smart grid. The ability to improve the efficiency of energy use in the power system by altering demand is widely viewed as being not merely promising but in fact essential. However, while the advantages of DSM are clear, arriving at an efficient implementation has so far proven to be less straightforward. There have recently been many proposals put forth in the literature to tackle the demand scheduling aspect of DSM. One particular approach based on a game-theoretic treatment of the day-ahead load-scheduling problem has recently gained tremendous popularity in the DSM literature. In this letter, an assessment of this approach is conducted, and its main result is challenged.