Three-Party Energy Management With Distributed Energy Resources in Smart Grid

By Wayes Tushar, Bo Chai, Chau Yuen, David B. Smith, Kristin L. Wood, Zaiyue Yang, H. Vincent Poor. IEEE transactions on industrial electronics (1982. Print), 2014

340 citations recorded by the source corpus.

In this paper, the benefits of distributed energy resources are considered in an energy management scheme for a smart community consisting of a large number of residential units (RUs) and a shared facility controller (SFC). A noncooperative Stackelberg game between the RUs and the SFC is proposed in order to explore how both entities can benefit, in terms of achieved utility and minimizing total cost respectively, from their energy trading with each other and the grid. From the properties of the game, it is shown that the maximum benefit to the SFC, in terms of reduction in total cost, is obtained at the unique and strategy-proof Stackelberg equilibrium (SE). It is further shown that the SE is guaranteed to be reached by the SFC and RUs by executing the proposed algorithm in a distributed fashion, where participating RUs comply with their best strategies in response to the action chosen by the SFC. In addition, a charging-discharging scheme is introduced for the SFC's storage device that can further lower the SFC's total cost if the proposed game is implemented. Numerical experiments confirm the effectiveness of the proposed scheme.

Subfields: Control and Systems Engineering, Electrical and Electronic Engineering

View Paper: https://www.semanticscholar.org/paper/cffd396947b901ff4b84a08e99be36d52dbfb378

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Citations in the corpus

Peer-to-Peer Trading in Electricity Networks: An Overview (2020, background): “For instance, in [4], the authors propose a three-party energy trading technique in which a community manager primarily participates in communitybased P2P trading with the prosumers of its community in”
Transforming Energy Networks via Peer to Peer Energy Trading: Potential of Game Theoretic Approaches (2018, background): “Hierarchical games have covered nearly all of the aspects of service domains, and demand response regulations [1], [38], for example, show how hierarchical games, through the use of suitable incentives, can influence users to participate in energy trading.”
Energy Sharing Management for Microgrids With PV Prosumers: A Stackelberg Game Approach (2017, background): “, basic price plus additional profit distribution [15], Shapley value [16], and Stackelberg game [17] –[19], etc.”
Smart Grid Testbed for Demand Focused Energy Management in End User Environments (2016, background): “Theoretically, smart grids are able to provide such services through DRM [11].”
A Motivational Game-Theoretic Approach for Peer-to-Peer Energy Trading in the Smart Grid (2019, background): “In a P2P trading platform, a prosumer with the need of energy can take advantage of other prosumers within its community with energy surplus by buying the excess energy at a relatively cheaper rate [12].”
Peer-to-Peer Energy Systems for Connected Communities: A Review of Recent Advances and Emerging Challenges (2020, background): “However, the benefit that a prosumer can reap by trading its energy in the market could be marginal if it cannot decide on its energy trading parameters, such as the how much energy to share and the price per unit of energy, independently [7].”
Consortium Blockchain for Secure Energy Trading in Industrial Internet of Things (2018, background): “decision makers in response to the decision taken by the leading player of the game [22].”
A Secure Charging Scheme for Electric Vehicles With Smart Communities in Energy Blockchain (2019, background): “[31] to improve the operator’s profit and minimize the total cost in energy trading.”
Energy Storage Sharing in Smart Grid: A Modified Auction-Based Approach (2015, neutral): “This can be either due to the fact that some SFCs do not have their own ESs [11] or that the ESs of the SFCs are not large enough”
Optimizing Energy Consumption of Hot Water System in Buildings with Solar Thermal Systems (2017, background): “Solar energy can be captured and transferred to electricity power though photovoltaic (PV) panel, and therefore photovoltaic panels have been widely installed in buildings such as commercial buildings and EV charging stations for energy management schemes (Tushar et al., 2015; Tushar et al., 2016a; ”
Energy Peer-to-Peer Trading in Virtual Microgrids in Smart Grids: A Game-Theoretic Approach (2020, methodology): “Apart from Nash game, Stackelberg game has been used to maximize seller utility and to minimize user costs [29].”
A Real-Time Demand-Response Algorithm for Smart Grids: A Stackelberg Game Approach (2016, background): “Recently, there has been growing interest in adopting the Stackelberg game to model hierarchical decision-making problems in smart grid systems [18].”
Distributed Energy Trading in Microgrids: A Game-Theoretic Model and Its Equilibrium Analysis (2015, methodology): “For examples of the applications of singleleader–multifollower Stackelberg solutions to hierarchical decision problems in a smart grid, see [42]–[44].”