2,807 research outputs found
A Distributed Demand-Side Management Framework for the Smart Grid
This paper proposes a fully distributed Demand-Side Management system for
Smart Grid infrastructures, especially tailored to reduce the peak demand of
residential users. In particular, we use a dynamic pricing strategy, where
energy tariffs are function of the overall power demand of customers. We
consider two practical cases: (1) a fully distributed approach, where each
appliance decides autonomously its own scheduling, and (2) a hybrid approach,
where each user must schedule all his appliances. We analyze numerically these
two approaches, showing that they are characterized practically by the same
performance level in all the considered grid scenarios. We model the proposed
system using a non-cooperative game theoretical approach, and demonstrate that
our game is a generalized ordinal potential one under general conditions.
Furthermore, we propose a simple yet effective best response strategy that is
proved to converge in a few steps to a pure Nash Equilibrium, thus
demonstrating the robustness of the power scheduling plan obtained without any
central coordination of the operator or the customers. Numerical results,
obtained using real load profiles and appliance models, show that the
system-wide peak absorption achieved in a completely distributed fashion can be
reduced up to 55%, thus decreasing the capital expenditure (CAPEX) necessary to
meet the growing energy demand
Transforming Energy Networks via Peer to Peer Energy Trading: Potential of Game Theoretic Approaches
Peer-to-peer (P2P) energy trading has emerged as a next-generation energy
management mechanism for the smart grid that enables each prosumer of the
network to participate in energy trading with one another and the grid. This
poses a significant challenge in terms of modeling the decision-making process
of each participant with conflicting interest and motivating prosumers to
participate in energy trading and to cooperate, if necessary, for achieving
different energy management goals. Therefore, such decision-making process
needs to be built on solid mathematical and signal processing tools that can
ensure an efficient operation of the smart grid. This paper provides an
overview of the use of game theoretic approaches for P2P energy trading as a
feasible and effective means of energy management. As such, we discuss various
games and auction theoretic approaches by following a systematic classification
to provide information on the importance of game theory for smart energy
research. Then, the paper focuses on the P2P energy trading describing its key
features and giving an introduction to an existing P2P testbed. Further, the
paper zooms into the detail of some specific game and auction theoretic models
that have recently been used in P2P energy trading and discusses some important
finding of these schemes.Comment: 38 pages, single column, double spac
A Consensus-Based Generalized Multi-Population Aggregative Game with Application to Charging Coordination of Electric Vehicles
This paper introduces a consensus-based generalized multi-population
aggregative game coordination approach with application to electric vehicles
charging under transmission line constraints. The algorithm enables agents to
seek an equilibrium solution while considering the limited infrastructure
capacities that impose coupling constraints among the users. The Nash-seeking
algorithm consists of two interrelated iterations. In the upper layer,
population coordinators collaborate for a distributed estimation of the
coupling aggregate term in the agents' cost function and the associated
Lagrange multiplier of the coupling constraint, transmitting the latest updated
values to their population's agents. In the lower layer, each agent updates its
best response based on the most recent information received and communicates it
back to its population coordinator. For the case when the agents' best response
mappings are non-expansive, we prove the algorithm's convergence to the
generalized Nash equilibrium point of the game. Simulation results demonstrate
the algorithm's effectiveness in achieving equilibrium in the presence of a
coupling constraint.Comment: 8 pages, 5 figures, journa
Can planners control competitive generators?
Consider an electricity market populated by competitive agents using thermal generating units. Generation often emits pollution which a planner may wish to constrain through regulation. Furthermore, generators’ ability to transmit energy may be naturally restricted by the grid’s facilities. The existence of both pollution standards and transmission constraints can impose several restrictions upon the joint strategy space of the agents. We propose a dynamic, game-theoretic model capable of analysing coupled constraints equilibria (also known as generalised Nash equilibria). Our equilibria arise as solutions to the planner’s problem of avoiding both network congestion and excessive pollution. The planner can use the coupled constraints’ Lagrange multipliers to compute the charges the players would pay if the constraints were violated. Once the players allow for the charges in their objective functions they will feel compelled to obey the constraints in equilibrium. However, a coupled constraints equilibrium needs to exist and be unique for this modification of the players’ objective functions ..[there was a “to” here, incorrect?].. induce the required behaviour. We extend the three-node dc model with transmission line constraints described in [10] and [2] to utilise a two-period load duration curve, and impose multi-period pollution constraints. We discuss the economic and environmental implications of the game’s solutions as we vary the planner’s preferences.
Liquidity risks on power exchanges
Financial derivatives are important hedging tool for asset’s manager. Electricity is by its very nature the most volatile commodity, which creates big incentive to share the risk among the market participants through financial contracts. But, even if volume of derivatives contracts traded on Power Exchanges has been growing since the beginning of the restructuring of the sector, electricity markets continue to be considerably less liquid than other commodities. This paper tries to quantify the effect of this insufficient liquidity on power exchange, by introducing a pricing equilibrium model for power derivatives where agents can not hedge up to their desired level. Mathematically, the problem is a two stage stochastic Generalized Nash Equilibrium and its solution is not unique. Computing a large panel of solutions, we show how the risk premium and player’s profit are affected by the illiquidity.illiquidity, electricity, power exchange, artitrage, generalized Nash Equilibrium, equilibrium based model, coherent risk valuation
General Purpose Technologies "Engines of Growth?"
Whole eras of technical progress and economic growth appear to be driven by a few key technologies, which we call General Purpose Technologies (GPT's). Thus the steam engine and the electric motor may have played such a role in the past, whereas semiconductors and computers may be doing as much in our era. GPT's are characterized by pervasiveness (they are used as inputs by many downstream sectors), inherent potential for technical improvements, and innovational complementarities', meaning that the productivity of R&D in downstream sectors increases as a consequence of innovation in the GPT. Thus, as GPT's improve they spread throughout the economy, bringing about generalized productivity gains. Our analysis shows that the characteristics of GPT's imply a sort of increasing returns to scale phenomenon, and that this may have a large role to play in determining the rate of technical advance; on the other hand this phenomenon makes it difficult for a decentralized economy to fully exploit the growth opportunities offered by evolving GPT's. In particular; if the relationship between the GPT and its users is limited to arms-length market transactions, there will be "too little, too late" innovation in both sectors. Likewise, difficulties in forecasting the technological developments of the other side may lower the rate of technical advance of all sectors. Lastly, we show that the analysis of GPT's has testable implications in the context of R&D and productivity equations, that can in principle be estimated.
Loss Allocation in Joint Transmission and Distribution Peer-to-Peer Markets
Large deployment of distribute energy resources and the increasing awareness
of end-users towards their energy procurement are challenging current practices
of electricity markets. A change of paradigm, from a top-down hierarchical
approach to a more decentralized framework, has been recently researched, with
market structures relying on multi-bilateral trades among market participants.
In order to guarantee feasibility in power system operation, it is crucial to
rethink the interaction with system operators and the way operational costs are
shared in such decentralized markets. We propose here to include system
operators, both at transmission and distribution level, as active actors of the
market, accounting for power grid constraints and line losses. Moreover, to
avoid market outcomes that discriminate agents for their geographical location,
we analyze loss allocation policies and their impact on market outcomes and
prices.Comment: Submitted to "IEEE Transactions on Power Systems" on January 15, 2020
- Revised on May 6, 2020 and on August 6, 2020 - Accepted on September 13,
202
The More Cooperation, the More Competition? A Cournot Analysis of the Benefits of Electric Market Coupling
Market coupling in Belgian and Dutch markets would permit more efficient use of intercountry transmission, 1) by counting only net flows against transmission limits, 2) by improving access to the Belgian market, and 3) by eliminating the mismatch in timing between interface auctions and the energy spot market. A Cournot market model that accounts for the region’s transmission pricing rules and limitations is used to simulate market outcomes with and without market coupling. This accounts for 1) and 2). Market coupling improves social surplus in the order of 108 €/year, unless it encourages the largest producer in the region to switch from a price-taking strategy in Belgium to a Cournot strategy due to a perceived diminishment of the threat of regulatory intervention. Benefit to Dutch consumers depends on the behavior of this company. The results illustrate how large-scale oligopoly models can be useful for assessing market integration
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