  Smart metering infrastructure allows for two-way communication and power
transfer. Based on this promising technology, we propose a demand-side
management (DSM) scheme for a residential neighbourhood of prosumers. Its core
is a discrete time dynamic game to schedule individually owned home energy
storage. The system model includes an advanced battery model, local generation
of renewable energy, and forecasting errors for demand and generation. We
derive a closed-form solution for the best-response problem of a player and
construct an iterative algorithm to solve the game. Empirical analysis shows
exponential convergence towards the Nash equilibrium. A comparison to a DSM
scheme with a static game, reveals the advantages of the dynamic game approach.
We provide an extensive analysis on the influence of the forecasting error on
the outcome of the game. A key result demonstrates that our approach is robust
even in the worst-case scenario. This grants considerable gains for the utility
company organising the DSM scheme and its participants.
