Adopting the Game Theory Approach in the Blockchain-Driven Pricing Optimization of Standalone Distributed Energy Generations

Abstract

The importance of the distributed generations cannot be overemphasized. This ranges from the contribution to resilience down to the energy cost efficiency advantage at the consumers' end. The distributed generations in some localities, however, lack connection to the utility grid due to the remoteness of the generation site. Certain benefits are, however, threatened. Thus, where there is no energy price regulation policy, fluctuations in energy prices could be the order of the day. This paper, thus, focuses on the transaction price optimization of the standalone distributed generations using the game theory approach. First, blockchain technology is incorporated in the energy transaction arena to bind prosumers and their energy transactions to a common platform. Next, for electricity price prediction, the linear regression algorithm is used to obtain the fitting equation from the current transaction data stored by the blockchain network. Using the fitting equation as the objective function, the particle swarm optimization (PSO) algorithm is used to achieve the proposed energy transaction price minimization and profit maximization. Finally, the individual hourly optimization results are fitted by a decision tree algorithm for instant referencing purposes in making energy best price transaction decisions. The individual results show that it is capable of constantly updating the optimized energy price in real-time based on the subsequent transaction records updated by the blockchain network.

The Consumer-Centered Electricity Reliability Enhancement in the Standalone Generation Arena

“…Thus, RDGs and their standalone power intermittency issue were not considered. A consumer-centered electricity price optimization approach in the standalone RDG platform was successfully presented in [19], however, the electricity supply adequacy and an alternative cost optimization method were not in the scope. Various other forms of reliability assessment of power systems have been performed but each focuses on a different problem-solving domain.…”

“…Subsequently, the input-oriented efficiency assessment approach is adopted to minimize the inputs under a constant return to scale, given the outputs. Compare equations ( 2), ( 5), and ( 6) with a characteristic equation of a straight line shown in (19). LOLE = mL + c ( 19) where m = slope of the equation, and c = intercept on the vertical (LOLE) axis.…”

A Data Integrity Verification Scheme for Centralized Database Using Smart Contract and Game Theory

“…Some solutions are aimed at solving problems in the field of pricing optimization, using game theory to solve the Nash equilibrium of pricing, and using blockchain to ensure the security of data storage. For example, in studying the transaction price optimization problem of independently distributed energy generation [28], the optimization problem of electric vehicle dynamic charging price [29], and the point-to-point power transaction price optimization problem between prosumers [30].…”

Game Theory-Based Optimal Cooperative Path Planning for Multiple UAVs

“…In this context, the game theory, an important branch of mathematics for studying conflicts and interactions among rational decision-makers [11], can offer a powerful tool to determine an optimal strategy. Indeed, as a solid framework for strategic interactions among competing players, the game theory has found various successful applications, e.g., in distributed energy generations [12], cooperative spectrum sensing [13], or recently in highway maintenance [14].…”