A Demand Response Management Model of Multiple Microgrids With Different Sales Areas Based on Stackelberg Game Theory

To fulfill the power demands of the electricity users in a specific area, multiple microgrids participate as electricity sellers in the power market. In this power market, different users have different impacts on the price strategies of the microgrids. We consider the demand response management of multiple users and multiple microgrids with different and overlapping sales areas. By constructing a Stackelberg game model between the microgrids and the users, we analyze the optimal price strategies for the microgrids and the optimal demand strategies for the users in a systematic way. We prove that there is a unique Stackelberg equilibrium solution for the game, including the associated equilibrium prices and demand strategies for the microgrids and users, respectively.