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 robust scalable demand-side management based on diffusion-ADMM strategy for smart grid

Demand-side management (DSM) involves a group of programs, initiatives, and technologies designed to encourage consumers to modify their level and pattern of electricity usage. This is performed following methods such as financial incentives and behavioral change through education. While the objective of the DSM is to achieve a balance between energy production and demand, effective and efficient implementation of the program rests within effective use of emerging Internet of things (IoT) concept for online interactions. Here, a novel DSM framework based on diffusion and alternating direction method of multipliers (ADMM) strategies, repeated under a model predictive control (MPC) protocol, is proposed. On the demand side, the customers autonomously and by cooperation with their immediate neighbors estimate the baseline price in real time. Based on the estimated price signal, the customers schedule their energy consumption using the ADMM cost-sharing strategy to minimize their incommodity level. On the supply side, the utility company determines the price parameters based on the customers real-time behavior to make a profit and prevent the infrastructure overload. The proposed mechanism is capable of tracking drifts in the optimal solution resulting from the changes in supply/demand sides. Moreover, it considers all classes of appliances by formulating the DSM problem as a mixed-integer programming (MIP) problem. Numerical examples are provided to show the effectiveness of the proposed framework

Reinforcement Learning Based Cooperative P2P Energy Trading between DC Nanogrid Clusters with Wind and PV Energy Resources

In order to replace fossil fuels with the use of renewable energy resources, unbalanced resource production of intermittent wind and photovoltaic (PV) power is a critical issue for peer-to-peer (P2P) power trading. To resolve this problem, a reinforcement learning (RL) technique is introduced in this paper. For RL, graph convolutional network (GCN) and bi-directional long short-term memory (Bi-LSTM) network are jointly applied to P2P power trading between nanogrid clusters based on cooperative game theory. The flexible and reliable DC nanogrid is suitable to integrate renewable energy for distribution system. Each local nanogrid cluster takes the position of prosumer, focusing on power production and consumption simultaneously. For the power management of nanogrid clusters, multi-objective optimization is applied to each local nanogrid cluster with the Internet of Things (IoT) technology. Charging/discharging of electric vehicle (EV) is performed considering the intermittent characteristics of wind and PV power production. RL algorithms, such as deep Q-learning network (DQN), deep recurrent Q-learning network (DRQN), Bi-DRQN, proximal policy optimization (PPO), GCN-DQN, GCN-DRQN, GCN-Bi-DRQN, and GCN-PPO, are used for simulations. Consequently, the cooperative P2P power trading system maximizes the profit utilizing the time of use (ToU) tariff-based electricity cost and system marginal price (SMP), and minimizes the amount of grid power consumption. Power management of nanogrid clusters with P2P power trading is simulated on the distribution test feeder in real-time and proposed GCN-PPO technique reduces the electricity cost of nanogrid clusters by 36.7%.Comment: 22 pages, 8 figures, to be submitted to Applied Energy of Elsevie

Incorporating user utility in a smart microgrid with distributed generation and elastic demand.

Demand Side Management (DSM) will play a large role in creating a pathway to a low carbon future. Microgrids are an ideal test bed for DSM within the Smart Grid (SG) framework, allowing for increased integration of distributed generation (DG), here focused on distributed Renewable Energy Sources (RESs). Existing work uses conservative estimates to model the stochastic nature of RESs, resulting in inaccuracies in simulation results. Large uncertainty in user specific participation in DSM programs exists. This paper develops a flexible energy load function, effectively incorporating different user's behaviour patterns into the DSM framework. Uncertainty in connecting small-scale wind generation into the smart microgrid is reduced by using an expected cost function to accurately map predicted wind speed to power output. Actual wind speed is varied across numerous sub-horizons within each time slot by using a pseudo-random number generator. The stochastic nature of renewable generation is effectively managed, producing a robust simulation. Model sensitivities are investigated and graphical results presented

Demand response performance and uncertainty: A systematic literature review

The present review has been carried out, resorting to the PRISMA methodology, analyzing 218 published articles. A comprehensive analysis has been conducted regarding the consumer's role in the energy market. Moreover, the methods used to address demand response uncertainty and the strategies used to enhance performance and motivate participation have been reviewed. The authors find that participants will be willing to change their consumption pattern and behavior given that they have a complete awareness of the market environment, seeking the optimal decision. The authors also find that a contextual solution, giving the right signals according to the different behaviors and to the different types of participants in the DR event, can improve the performance of consumers' participation, providing a reliable response. DR is a mean of demand-side management, so both these concepts are addressed in the present paper. Finally, the pathways for future research are discussed.This article is a result of the project RETINA (NORTE-01-0145- FEDER-000062), supported by Norte Portugal Regional Operational Programme (NORTE 2020), under the PORTUGAL 2020 Partnership Agreement, through the European Regional Development Fund (ERDF). We also acknowledge the work facilities and equipment provided by GECAD research center (UIDB/00760/2020) to the project team, and grants CEECIND/02887/2017 and SFRH/BD/144200/2019.info:eu-repo/semantics/publishedVersio

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

Demand Side Management of Electric Vehicles in Smart Grids: A survey on strategies, challenges, modeling, and optimization

The shift of transportation technology from internal combustion engine (ICE) based vehicles to electricvehicles (EVs) in recent times due to their lower emissions, fuel costs, and greater efficiency hasbrought EV technology to the forefront of the electric power distribution systems due to theirability to interact with the grid through vehicle-to-grid (V2G) infrastructure. The greater adoptionof EVs presents an ideal use-case scenario of EVs acting as power dispatch, storage, and ancillaryservice-providing units. This EV aspect can be utilized more in the current smart grid (SG) scenarioby incorporating demand-side management (DSM) through EV integration. The integration of EVswith DSM techniques is hurdled with various issues and challenges addressed throughout thisliterature review. The various research conducted on EV-DSM programs has been surveyed. This reviewarticle focuses on the issues, solutions, and challenges, with suggestions on modeling the charginginfrastructure to suit DSM applications, and optimization aspects of EV-DSM are addressed separatelyto enhance the EV-DSM operation. Gaps in current research and possible research directions have beendiscussed extensively to present a comprehensive insight into the current status of DSM programsemployed with EV integration. This extensive review of EV-DSM will facilitate all the researchersto initiate research for superior and efficient energy management and EV scheduling strategies andmitigate the issues faced by system uncertainty modeling, variations, and constraints