On distributed scheduling of flexible demand and Nash equilibria in the electricity market

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Title: On distributed scheduling of flexible demand and Nash equilibria in the electricity market
Authors: De Paola, A
Angeli, D
Strbac, G
Item Type: Journal Article
Abstract: This paper presents a novel game theory approach for large-scale deployment of price-responsive electrical appliances. In the proposed distributed control scheme, each appliance independently schedules its power consumption on the basis of a broadcast demand/price signal, aiming to complete its task at minimum cost. The conflicting interactions of the appliances, competing for power consumption at the cheapest hours of the day, are modelled through a differential game with a continuum of players, and efficient deployment of flexible demand is characterized as a Nash equilibrium. A novel approach is adopted to derive necessary and sufficient equilibrium conditions: intrinsic properties of the problem (price monotonicity, unidirectionality of power transfers) are exploited to perform an equilibrium study based on sublevel sets of the considered demand profiles. As a result, it is possible to determine for which penetration levels of flexible demand, types of appliances and inflexible demand profiles it is possible to achieve an equilibrium. Such stable configuration is achieved through the broadcast of a single demand/price signal and does not require iterated exchange of information between devices and coordinator. In addition, the global optimality of the equilibrium is proved, necessary conditions for Pareto optimality are derived, and a preliminary analysis of devices with partial time availability is carried out. The performance of the proposed control strategy is evaluated in simulation, considering realistic future scenarios of the UK power system with large penetration of flexible demand.
Issue Date: 1-Dec-2018
Date of Acceptance: 4-Dec-2017
URI: http://hdl.handle.net/10044/1/56928
DOI: https://dx.doi.org/10.1007/s13235-017-0237-3
ISSN: 2153-0785
Publisher: Springer Verlag
Start Page: 761
End Page: 798
Journal / Book Title: Dynamic Games and Applications
Volume: 8
Issue: 4
Copyright Statement: © The Author(s) 2017. This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Sponsor/Funder: Engineering & Physical Science Research Council (E
Engineering & Physical Science Research Council (EPSRC)
Engineering & Physical Science Research Council (E
Funder's Grant Number: EP/I031650/1
A1300 (EP/N03466X/1)
Keywords: Science & Technology
Physical Sciences
Mathematics, Interdisciplinary Applications
Smart grid
Distributed algorithms
Price-responsive appliances
Electricity market
Differential games
Publication Status: Published
Open Access location: https://link.springer.com/article/10.1007/s13235-017-0237-3
Online Publication Date: 2017-12-20
Appears in Collections:Faculty of Engineering
Electrical and Electronic Engineering
Centre for Environmental Policy
Faculty of Natural Sciences

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