Energy management and peer-to-peer trading in future smart grids: a distributed game-theoretic approach

Abstract

© 2020 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.We consider the economic dispatch problem for a day-ahead, peer-to-peer (P2P) electricity market of prosumers (i.e., energy consumers who can also produce electricity) in a distribution network. In our model, each prosumer has the capability of producing power through its dispatchable or non-dispatchable generation units and/or has a storage energy unit. Furthermore, we consider a hybrid main grid & P2P market in which each prosumer can trade power both with the main grid and with (some of) the other prosumers. First, we cast the economic dispatch problem as a noncooperative game with coupling constraints. Then, we design a fully-scalable algorithm to steer the system to a generalized Nash equilibrium (GNE). Finally, we show through numerical studies that the proposed methodology has the potential to ensure safe and efficient operation of the power grid.This work was partially supported by NWO under research projects OMEGA (grant n. 613.001.702), P2P-TALES (grant n. 647.003.003), the ERC under research project COS-MOS (802348), the European Union’s Horizon 2020 research and innovationprogramme under the Marie Skłodowska-Curie grant agreement No 675318 (INCITE)Peer ReviewedPostprint (author's final draft