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 Game-Theoretic Approach to Energy Trading in the Smart Grid

Electric storage units constitute a key element in the emerging smart grid system. In this paper, the interactions and energy trading decisions of a number of geographically distributed storage units are studied using a novel framework based on game theory. In particular, a noncooperative game is formulated between storage units, such as PHEVs, or an array of batteries that are trading their stored energy. Here, each storage unit's owner can decide on the maximum amount of energy to sell in a local market so as to maximize a utility that reflects the tradeoff between the revenues from energy trading and the accompanying costs. Then in this energy exchange market between the storage units and the smart grid elements, the price at which energy is traded is determined via an auction mechanism. The game is shown to admit at least one Nash equilibrium and a novel proposed algorithm that is guaranteed to reach such an equilibrium point is proposed. Simulation results show that the proposed approach yields significant performance improvements, in terms of the average utility per storage unit, reaching up to 130.2% compared to a conventional greedy approach.Comment: 11 pages, 11 figures, journa

Coalitional model predictive control for systems of systems

An aspect so far rarely contemplated in distributed control problems is the explicit consideration of individual (local) interests of the components of a complex system. Indeed, the focus of the majority of the literature about distributed control has been the overall system performance. While on one hand this permitted to address fundamental properties of centralized control, such as system-wide optimality and stability, one the other hand it implied assuming unrestricted cooperation across local controllers. However, when dealing with multi-agent systems with a strong heterogeneous character, cooperation between the agents cannot be taken for granted (due to, for example, logistics, market competition), and selfish interests may not be neglected. Another critical point that must be kept into consideration is the diversity characterizing systems of systems (SoS), yielding very complex interactions between the agents involved (one example of such system is the smart grid). In order to tackle such inherent aspects of SoS, the research presented in this thesis has been concerned with the development of a novel framework, the coalitional control, that extends the scope of advanced control methods (in particular MPC) by drawing concepts from cooperative game theory that are suited for the inherent heterogeneity of SoS, providing as well an economical interpretation useful to explicitly take into account local selfish interests. Thus, coalitional control aims at governing the association/dissociation dynamics of the agents controlling the system, according to the expected benefits of their possible cooperation. From a control theoretical perspective, this framework is founded on the theory of switched systems and variable structure/topology networked systems, topics that are recently experiencing a renewed interest within the community. The main concepts and challenges in coalitional control, and the links with cooperative network game theory are presented in this document, tracing a path from model partitioning to the control schemes whose principles delineate the idea of coalitional control. This thesis focuses on two basic architectures: (i) a hierarchically supervised evolution of the coalitional structure, and (ii) a protocol for autonomous negotiation between the agents, with specific mechanisms for benefit redistribution, leading to the emergence of cooperating clusters.Premio Extraordinario de Doctorado U

Load Forecasting Based Distribution System Network Reconfiguration-A Distributed Data-Driven Approach

In this paper, a short-term load forecasting approach based network reconfiguration is proposed in a parallel manner. Specifically, a support vector regression (SVR) based short-term load forecasting approach is designed to provide an accurate load prediction and benefit the network reconfiguration. Because of the nonconvexity of the three-phase balanced optimal power flow, a second-order cone program (SOCP) based approach is used to relax the optimal power flow problem. Then, the alternating direction method of multipliers (ADMM) is used to compute the optimal power flow in distributed manner. Considering the limited number of the switches and the increasing computation capability, the proposed network reconfiguration is solved in a parallel way. The numerical results demonstrate the feasible and effectiveness of the proposed approach.Comment: 5 pages, preprint for Asilomar Conference on Signals, Systems, and Computers 201

Game-theoretic learning and allocations in robust dynamic coalitional games

The problem of allocation in coalitional games with noisy observations and dynamic4 environments is considered. The evolution of the excess is modelled by a stochastic differential5 inclusion involving both deterministic and stochastic uncertainties. The main contribution is a6 set of linear matrix inequality conditions which guarantee that the distance of any solution of the7 stochastic differential inclusions from a predefined target set is second-moment bounded. As a direct8 consequence of the above result we derive stronger conditions still in the form of linear matrix9 inequalities to hold in the entire state space, which guarantee second-moment boundedness. Another10 consequence of the main result are conditions for convergence almost surely to the target set, when the11 Brownian motion vanishes in proximity of the set. As further result we prove convergence conditions12 to the target set of any solution to the stochastic differential equation if the stochastic disturbance13 has bounded support. We illustrate the results on a simulated intelligent mobility scenario involving14 a transport network