A Stackelberg Game-Based Approach for Transactive Energy Management in Smart Distribution Networks

Sara Haghifam, Kazem Zare, Mehdi Abapour, Gregorio Muñoz-Delgado and Javier Contreras
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Sara Haghifam: Faculty of Electrical and Computer Engineering, University of Tabriz, Tabriz 51368, Iran
Kazem Zare: Faculty of Electrical and Computer Engineering, University of Tabriz, Tabriz 51368, Iran
Mehdi Abapour: Faculty of Electrical and Computer Engineering, University of Tabriz, Tabriz 51368, Iran
Gregorio Muñoz-Delgado: E.T.S. de Ingeniería Industrial, University of Castilla–La Mancha, 13071 Ciudad Real, Spain
Javier Contreras: E.T.S. de Ingeniería Industrial, University of Castilla–La Mancha, 13071 Ciudad Real, Spain

Energies, 2020, vol. 13, issue 14, 1-34

Abstract: Recently, with the penetration of numerous Distributed Energy Resources (DER) in Smart Distribution Networks (SDN), Local Transactive Markets have emerged. Exchanging energy between all participants of local markets results in the satisfaction of producers and consumers. Based on these issues, this study provides a novel framework for the participation of SDN-independent entities in wholesale and local electricity markets simultaneously. In this regard, the considered system’s players, namely Distribution System Operator (DSO) and DER Aggregator (AG), take part within local as well as wholesale markets in two-day ahead and real-time stages. Moreover, to deal with the inherent conflict between the existing players’ interests, a Stackelberg game-based technique is proposed. In the raised competition, the leader, DSO, attempts to minimize its operating costs, while the follower, DER AG, tends to maximize its profit. Therefore, actors’ actions choices within both markets are made non-cooperatively. On the other hand, to handle the uncertain nature of stochastic parameters in the depicted problem, Monte Carlo Simulation (MCS), together with a fast backward/forward scenario reduction approach, is exploited. Ultimately, to evaluate the efficiency of the proposed scheme, two different case studies, with and without considering the competitive environment, are implemented on a modified IEEE-33 bus SDN.

Keywords: transactive energy; local electricity markets; Stackelberg game; smart distribution systems; aggregators (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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