Abstract
This paper deals with game theoretic real-time pricing method based on dual decomposition and its application to load frequency control of power networks. The proposed pricing method in this study aims to solve the constrained optimization problem consist of each player's utility and social welfare under selfish players. Selfish player's decision is a Nash equilibrium solution considering their own cost functions. We show this method can lead their own decision to social welfare maximization. Finally we show the effectiveness of the proposed methodology for load frequency control by several simulation results.
