Using game theoretic approaches to implement smart grids

The smart grid is a user system that will elevate the conventional electrical grid system to one that functions more cooperatively, responsively and economically. One of the most important features of smart grid technology that makes it smart or smarter than the current grid is the integration of bi-directional flow of information along with electricity, which can be used to provide effective and controlled power generation and consumption. In this project, first we investigate how game theory can be used in smart grid communication due to its proven efficiency in wireless and wireline communication. And then to implement algorithms using cooperative game theory to solve the problem of the power loss during power transfer process. We have applied the game theoretic coalition formulation strategy and explain how the micro-grid action as to form coalition group to minimize the power loss when power is transmitted from a micro-grid to another micro-grid or the macro station. To maximizethe profit of coalition, a micro-grid will find partners which are able to maximize the payoff function value. In this project we focused in particular on using cooperative game theory to solve the problem of power loss.