Penalty Based Control Mechanism for Strategic Prosumers in a Distribution Network

Arnob Ghosh and Vaneet Aggarwal
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Arnob Ghosh: Indian Institute of Technology-Delhi, Mechanical Engineering Department, Bharti School of Telecom Technology and Management, Delhi 110016, India
Vaneet Aggarwal: Purdue University, School of Industrial Engineering and School of Electrical and Computer Engineering, West Lafayette, IN 47907, USA

Energies, 2020, vol. 13, issue 2, 1-14

Abstract: The distribution side of the traditional power grid is changing as the users (known as prosumers) can inject power to the grid. However, uncontrollable injection of power can destabilize the grid. Thus, the stability of the grid must be maintained. Since the prosumers are self-interested entities, they will take their actions to maximize their own pay-offs. We formulate the problem as a non-cooperative game theoretic problem where the magnitude of the voltage must be within an acceptable limit at each node of the power network. Since the power-flow equations must be satisfied at each node, it becomes a coupled constrained game where the constraints are the same across the prosumers. We propose a distributed penalty based algorithm which converges to an equilibrium. In this mechanism, the prosumers are quoted a price based on the active and reactive power drawn or injected to the power grid. The algorithm is easy to implement and it converges to an efficient solution which maximizes the sum of the utilities of the prosumers while maintaining the grid’s stability.

Keywords: power flow model; primal-dual algorithm; coupled constrained game; Nash equilibrium; convex optimization (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 (3)

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