A Pricing Strategy for Smart Grid Based on PSO and Distributed Iterative Algorithm

This paper proposes a pricing strategy for the Market by using a Stackelberg game-based bi-level programming model. In the model, the wholesale price and the retail price is optimized by the Market to increase its profit. In the model, the Energy Provider (EP) optimize optimizes the adjustment coefficient to increase the trading probability with the Utility Company (UC). Besides, the Market can sell the power to the UC directly. Then, the UCs determine their retail price by non-cooperative game to increase their profit. The simulation results reveal that the Market determines the optimal price to maximize profits. On the other hand, the proposed price strategy of EP can increase the trading probability, which promotes more UCs to trade with EP, thus increasing its benefit. Finally, UCs get a bash equilibrium through the non-cooperative game. The research proves that the proposed strategy is a win–win strategy.