An integrated two-level demand-side management game applied to smart energy hubs with storage. (1st September 2020)

• Record Type: Journal Article
• Authors: Sobhani, Seyed Omid; Sheykhha, Siamak; Madlener, Reinhard
• Is Part Of: Energy. Volume 206(2020)
• Publication Date: 2020-09-01
• Subjects: Smart energy hub (SEH) -- Integrated demand-response program -- Distributed demand-side management -- Storage system; Power resources -- Periodicals; Power (Mechanics) -- Periodicals; Energy consumption -- Periodicals; 333.7905
• DOI: 10.1016/j.energy.2020.118017
• Languages: English
• ISSNs: 0360-5442

Abstract

Abstract: Energy hubs, an important component of future energy networks employing distributed demand-side management, can play a key role in enhancing the efficiency and reliability of power grids. In power grids, energy hub operators need to optimally schedule the consumption, conversion, and storage of available resources based on their own utility functions. In sufficiently large networks, scheduling an individual hub can affect the utility of the other energy hubs. In this paper, the interaction between energy hubs is modeled as a congestion game . Each energy hub operator (player) participates in a dynamic energy pricing market and tries to maximize his/her own payoff when satisfying energy demand. We propose a distributed algorithm based on a congestion game, which guarantees the existence of a Nash equilibrium. Furthermore, two different types of signaling are developed (price-based, load-based) and simulation results compared. Simulation results show that with the implementation of either setup the peak-to-average ratio between electricity networks and natural gas networks diminishes. An analysis of the results shows that either setup can dominate the other one with regard to generation costs, convergence rate, price level, and stability. Hence, energy providers and consumers can choose a favorable setup based on their respective needs. Highlights: A distributed demand response program of interconnected smart energy hubs is proposed. The algorithm is modified to be applicable in the presence of energy storage devices. Two signaling schemes in which players independently maximize utility are introduced. These schemes are compared in terms of generation cost, convergence rate, and price level. In both setups, a marked reduction in the peak-to-average ratio is observed.