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In this paper an efficient energy curtailment scheme is studied, which enables the power users of a smart grid network to decide on the reduction in energy supplied to them in the event of a power outage in the system. Considering the advantages of a two-way communications infrastructure for any future smart grid, a non-cooperative generalized Nash game is proposed where the players are users of power in the network. They adopt a strategy to choose the amount of reduction in energy supplied to them based on their energy requirements so as to minimize the total cost incurred to the system due to the power outage (i.e., social optimality).
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