The feature of bidirectional communication in a smart grid involves the interaction between consumer and utility for optimizing the energy consumption of the users. For optimal management of the energy at the end user, several demand side management techniques are implemented. This work proposes a home energy management system, where consumption of household appliances is optimized using a hybrid technique. This technique is developed from cuckoo search algorithm and earthworm algorithm. However, there is a problem in such home energy management systems, that is, an uncertain behavior of the user that can lead to force start or stop of an appliance, deteriorating the purpose of scheduling of appliances. In order to solve this issue, coordination among appliances for rescheduling is incorporated in home energy management system using game theory. The appliances of the home are categorized in three different groups and their electricity cost is computed through the real-time pricing signals. Optimization schemes are implemented and their performance is scrutinized with and without coordination among the appliances. Simulation outcomes display that our proposed technique has minimized the total electricity cost by 50.6% as compared to unscheduled cost. Moreover, coordination among appliances has helped in increasing the user comfort by reducing the waiting time of appliances. The Shapley value has outperformed the Nash equilibrium and zero sum by achieving the maximum reduction in waiting time of appliances.
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