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A Stackelberg game for incentive-based demand response in energy markets

2022/04/19 by Marta Fochesato, Carlo Cenedese, Fochesato, Marta +3 · 2 citations
Computer Science · Engineering · #FOS: Electrical engineering #Systems and Control (eess.SY) #cs.SY #eess.SY #electronic engineering #information engineering

paper · pdf · doi:10.48550/arxiv.2204.08730

Accepted to 61st IEEE Conference on Decision and Control (CDC), 2022

arxiv created 2022/11/09 · arxiv updated 2022/11/10

Abstract

In modern buildings renewable energy generators and storage devices are spreading, and consequently the role of the users in the power grid is shifting from passive to active. We design a demand response scheme that exploits the prosumers' flexibility to provide ancillary services to the main grid. We propose a hierarchical scheme to coordinate the interactions between the distribution system operator and a community of smart prosumers. The framework inherits characteristics from price-based and incentive-based schemes and it retains the advantages of both. We cast the problem as a Stackelberg game with the prosumers as followers and the distribution system operator as leader. We solve the resulting bilevel optimization program via a KKT reformulation, proving the existence and the convergence to a local Stackelberg equilibrium. Finally, we provide numerical simulations to corroborate our claims on the benefits of the proposed framework.

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