An Integrated Two-Level Demand-Side Management Game Applied to Smart Energy Hubs with Storage

S. Omid Sobhani (), Siamak Sheykhha () and Reinhard Madlener
Additional contact information
S. Omid Sobhani: Sharif University of Technology, Postal: Department of Energy Engineering, Sharif University of Technology, Tehran, Iran, http://energy.sharif.ir/~web/index.php/en/
Siamak Sheykhha: E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), https://www.fcn.eonerc.rwth-aachen.de

No 14/2018, FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)

Abstract: The integration of energy hubs – as an important component of future energy networks that will employ demand-side management techniques – has a key role in the process of efficiency improvement and reliability enhancement of power grids. In such 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 potential game. Each energy hub operator (player) participates in a dynamic energy pricing market and tries to maximize his own payoff with regard to energy consumption satisfaction. We propose a distributed algorithm based on a potential game, which guarantees the existence of a Nash equilibrium. Furthermore, two different types of signaling are developed and simulation results are 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 have superiority over the other one with regard to generation costs, convergence rate, price level, and the stability perspective. Hence, energy providers and consumers can choose a favorable setup based on their respective needs.

Keywords: Smart Energy Hub (SEH); Integrated Demand-Response Program; Distributed Demand-Side Management; Storage System (search for similar items in EconPapers)
JEL-codes: C61 C72 Q31 Q41 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2018-11, Revised 2020-03
New Economics Papers: this item is included in nep-ene, nep-gth and nep-ore
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://www.fcn.eonerc.rwth-aachen.de/global/show_ ... p?id=aaaaaaaaalqnpvw Full text (application/pdf)

Related works:
Journal Article: An integrated two-level demand-side management game applied to smart energy hubs with storage (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:fcnwpa:2018_014

Access Statistics for this paper

More papers in FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN) Contact information at EDIRC.
Bibliographic data for series maintained by Hendrik Schmitz ().