9,559 research outputs found

    Transforming Energy Networks via Peer to Peer Energy Trading: Potential of Game Theoretic Approaches

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    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

    Load Shifting in the Smart Grid: To Participate or Not?

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    Demand-side management (DSM) has emerged as an important smart grid feature that allows utility companies to maintain desirable grid loads. However, the success of DSM is contingent on active customer participation. Indeed, most existing DSM studies are based on game-theoretic models that assume customers will act rationally and will voluntarily participate in DSM. In contrast, in this paper, the impact of customers' subjective behavior on each other's DSM decisions is explicitly accounted for. In particular, a noncooperative game is formulated between grid customers in which each customer can decide on whether to participate in DSM or not. In this game, customers seek to minimize a cost function that reflects their total payment for electricity. Unlike classical game-theoretic DSM studies which assume that customers are rational in their decision-making, a novel approach is proposed, based on the framework of prospect theory (PT), to explicitly incorporate the impact of customer behavior on DSM decisions. To solve the proposed game under both conventional game theory and PT, a new algorithm based on fictitious player is proposed using which the game will reach an epsilon-mixed Nash equilibrium. Simulation results assess the impact of customer behavior on demand-side management. In particular, the overall participation level and grid load can depend significantly on the rationality level of the players and their risk aversion tendency.Comment: 9 pages, 7 figures, journal, accepte

    Modeling Electricity Markets as Two-Stage Capacity Constrained Price Competition Games under Uncertainty

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    The last decade has seen an increasing application of game theoretic tools in the analysis of electricity markets and the strategic behavior of market players. This paper focuses on the model examined by Fabra et al. (2008), where the market is described by a two-stage game with the firms choosing their capacity in the first stage and then competing in prices in the second stage. By allowing the firms to endogenously determine their capacity, through the capacity investment stage of the game, they can greatly affect competition in the subsequent pricing stage. Extending this model to the demand uncertainty case gives a very good candidate for modeling the strategic aspect of the investment decisions in an electricity market. After investigating the required assumptions for applying the model in electricity markets, we present some numerical examples of the model on the resulting equilibrium capacities, prices and profits of the firms. We then proceed with two results on the minimum value of price caps and the minimum required revenue from capacity mechanisms in order to induce adequate investments

    Smart Microgrids: Overview and Outlook

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    The idea of changing our energy system from a hierarchical design into a set of nearly independent microgrids becomes feasible with the availability of small renewable energy generators. The smart microgrid concept comes with several challenges in research and engineering targeting load balancing, pricing, consumer integration and home automation. In this paper we first provide an overview on these challenges and present approaches that target the problems identified. While there exist promising algorithms for the particular field, we see a missing integration which specifically targets smart microgrids. Therefore, we propose an architecture that integrates the presented approaches and defines interfaces between the identified components such as generators, storage, smart and \dq{dumb} devices.Comment: presented at the GI Informatik 2012, Braunschweig Germany, Smart Grid Worksho
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