Game theory based bidding strategy for prosumers in a distribution system with a retail electricity market
Distributed energy resources (DERs) are deployed vastly to reduce carbon emission, improve power quality and maintain the reliability of distribution systems. With the introduction of new players, such as prosumers, which are constructed with DERs,...
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| Format: | Article |
| Language: | English |
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Wiley
2018-10-01
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| Series: | IET Smart Grid |
| Subjects: | |
| Online Access: | https://digital-library.theiet.org/content/journals/10.1049/iet-stg.2018.0048 |
| _version_ | 1818644588397592576 |
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| author | Zheming Liang Wencong Su |
| author_facet | Zheming Liang Wencong Su |
| author_sort | Zheming Liang |
| collection | DOAJ |
| description | Distributed energy resources (DERs) are deployed vastly to reduce carbon emission, improve power
quality and maintain the reliability of distribution systems. With the
introduction of new players, such as prosumers, which are constructed with DERs,
distribution system operators (DSOs) are facing changes in the retail
electricity market. Prosumers need a well-defined strategic bidding mechanism to
maximize their operation revenue, while DSOs need a new market clearing
mechanism for the changed retail electricity market. Thus, an innovative
game-theoretic market framework for a prosumer-centric retail electricity market
is proposed. A bilevel algorithm is adopted to model new features of DSOs,
utility companies and prosumers. The supply function equilibrium model,
Nikaido–Isoda functions, and relaxation algorithms are applied to analyse the
competition among key participants in a retail electricity market. Extensive
simulation results are employed to illustrate and validate the effectiveness of
the proposed framework for bidding strategies of prosumers with a retail
electricity market. Specifically, the strategy with dumping-bid or abnormal-bid
from a prosumer is suppressed by the market operator in the model. Moreover, the
sensitivity analysis shows that the proposed framework can handle various
numbers of prosumers in the retail electricity market with reasonable
computational time and convergence rate. |
| first_indexed | 2024-12-17T00:17:14Z |
| format | Article |
| id | doaj.art-6ddb72b6dd94465cb7a09c04e7c80a6c |
| institution | Directory Open Access Journal |
| issn | 2515-2947 |
| language | English |
| last_indexed | 2024-12-17T00:17:14Z |
| publishDate | 2018-10-01 |
| publisher | Wiley |
| record_format | Article |
| series | IET Smart Grid |
| spelling | doaj.art-6ddb72b6dd94465cb7a09c04e7c80a6c2022-12-21T22:10:40ZengWileyIET Smart Grid2515-29472018-10-0110.1049/iet-stg.2018.0048IET-STG.2018.0048Game theory based bidding strategy for prosumers in a distribution system with a retail electricity marketZheming Liang0Wencong Su1Department of Electrical and Computer Engineering, University of Michigan-DearbornDepartment of Electrical and Computer Engineering, University of Michigan-DearbornDistributed energy resources (DERs) are deployed vastly to reduce carbon emission, improve power quality and maintain the reliability of distribution systems. With the introduction of new players, such as prosumers, which are constructed with DERs, distribution system operators (DSOs) are facing changes in the retail electricity market. Prosumers need a well-defined strategic bidding mechanism to maximize their operation revenue, while DSOs need a new market clearing mechanism for the changed retail electricity market. Thus, an innovative game-theoretic market framework for a prosumer-centric retail electricity market is proposed. A bilevel algorithm is adopted to model new features of DSOs, utility companies and prosumers. The supply function equilibrium model, Nikaido–Isoda functions, and relaxation algorithms are applied to analyse the competition among key participants in a retail electricity market. Extensive simulation results are employed to illustrate and validate the effectiveness of the proposed framework for bidding strategies of prosumers with a retail electricity market. Specifically, the strategy with dumping-bid or abnormal-bid from a prosumer is suppressed by the market operator in the model. Moreover, the sensitivity analysis shows that the proposed framework can handle various numbers of prosumers in the retail electricity market with reasonable computational time and convergence rate.https://digital-library.theiet.org/content/journals/10.1049/iet-stg.2018.0048power marketsgame theoryretailingdistributed power generationdistribution system operatorsmarket clearing mechanismchanged retail electricity marketinnovative game-theoretic market frameworkprosumer-centric retail electricity marketmarket operatorwell-defined strategic bidding mechanismbilevel algorithmsupply function equilibrium modelrelaxation algorithmsdumping-bidabnormal-bidsensitivity analysisdistributed energy resources |
| spellingShingle | Zheming Liang Wencong Su Game theory based bidding strategy for prosumers in a distribution system with a retail electricity market IET Smart Grid power markets game theory retailing distributed power generation distribution system operators market clearing mechanism changed retail electricity market innovative game-theoretic market framework prosumer-centric retail electricity market market operator well-defined strategic bidding mechanism bilevel algorithm supply function equilibrium model relaxation algorithms dumping-bid abnormal-bid sensitivity analysis distributed energy resources |
| title | Game theory based bidding strategy for prosumers in a distribution system with a retail electricity market |
| title_full | Game theory based bidding strategy for prosumers in a distribution system with a retail electricity market |
| title_fullStr | Game theory based bidding strategy for prosumers in a distribution system with a retail electricity market |
| title_full_unstemmed | Game theory based bidding strategy for prosumers in a distribution system with a retail electricity market |
| title_short | Game theory based bidding strategy for prosumers in a distribution system with a retail electricity market |
| title_sort | game theory based bidding strategy for prosumers in a distribution system with a retail electricity market |
| topic | power markets game theory retailing distributed power generation distribution system operators market clearing mechanism changed retail electricity market innovative game-theoretic market framework prosumer-centric retail electricity market market operator well-defined strategic bidding mechanism bilevel algorithm supply function equilibrium model relaxation algorithms dumping-bid abnormal-bid sensitivity analysis distributed energy resources |
| url | https://digital-library.theiet.org/content/journals/10.1049/iet-stg.2018.0048 |
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