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

2014/06/22 by Wayes Tushar, Bo Chai, Tushar, Wayes +11
Engineering · #FOS: Electrical engineering #Microgrid Control and Optimization #Optimal Power Flow Distribution #Smart Grid Energy Management #Systems and Control (eess.SY) #electronic engineering #information engineering

paper · pdf · doi:10.48550/arxiv.1406.5794

openalex publication_date 2014/06/22 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

In this paper, the benefits of distributed energy resources (DERs) are\nconsidered in an energy management scheme for a smart community consisting of a\nlarge number of residential units (RUs) and a shared facility controller (SFC).\nA non-cooperative Stackelberg game between RUs and the SFC is proposed in order\nto explore how both entities can benefit, in terms of achieved utility and\nminimizing total cost respectively, from their energy trading with each other\nand the grid. From the properties of the game, it is shown that the maximum\nbenefit to the SFC in terms of reduction in total cost is obtained at the\nunique and strategy proof Stackelberg equilibrium (SE). It is further shown\nthat the SE is guaranteed to be reached by the SFC and RUs by executing the\nproposed algorithm in a distributed fashion, where participating RUs comply\nwith their best strategies in response to the action chosen by the SFC. In\naddition, a charging-discharging scheme is introduced for the SFC's storage\ndevice (SD) that can further lower the SFC's total cost if the proposed game is\nimplemented. Numerical experiments confirm the effectiveness of the proposed\nscheme.\n

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