Game-Theoretic Energy Source Allocation Mechanism in Smart-Grids

This work studies the decentralized and uncoordinated energy source selection problem for smart-grid consumers with heterogeneous energy profiles and risk attitudes, which compete for a limited amount of renewable energy sources. We model this problem as a non-cooperative game and study the existence of mixed-strategy Nash equilibria under the proportional allocation policy. Also, we derive closed-form expressions of the renewable energy demand and social cost under varying consumer profiles, energy costs and availability. We study numerically the efficiency of this decentralized scheme compared to a centralized one via the price of anarchy metric.