Research on Game Operation of Multi-Stakeholder in Distribution Network in Electricity Market

Abstract

With the development of the electricity market, various stakeholders such as batteries, multi-microgrid (MMG), and electric vehicle (EV) clusters, can trade with either the distribution network or each other to meet their power balance needs and to maximize their profits. This paper proposes a two-level game model based on game theory to study the operation strategy of stakeholders in the distribution network. First, each stakeholder predicts its electricity demand profile. A Markov Decision Process (MDP) model of random variables is established to predict the charging and discharging power of the battery. Then, the two-level game is presented to let multi-stakeholder participate, in which different kinds of stakeholders have different game strategy limits. Additionally, suggestions for battery operation modes under different compensation coefficients are given to participate in the subsequent two-level game. An algorithm is proposed to allow stakeholders to merge or split self-adaptively based on Nondominated Sorting Genetic Algorithm II (NSGA-II) to optimize operation mode. Finally, the proposed model is applied to the PG and E69-bus distribution system and a practical 101-bus distribution system in China. The case studies show that different game strategy limits of the stakeholders will affect the distribution of the Nash equilibrium (NE) solutions. The multi-stakeholder system can better absorb regional unbalanced power through electricity transactions, and further increase the benefits of each stakeholder.

Price Strategy Analysis of Electricity Retailers Based on Evolutionary Game on Complex Networks

“…Game theory is used to solve the problem that two or more interested entities can make the best decision in the face of conflict of interest [15,16], and there are many applications in the electricity market in recent years. For example, in order to study the operation strategy of stakeholders in a distribution network, a two-level game model with multi-stakeholder participation has been constructed in [17]. Because the transaction is completely controlled by a few companies in the market that produce the same or homogeneous product, companies not only have to consider the behavior of consumers, but also the reactions of their competitors; thus, a duopoly Stackelberg game model has been constructed to study the strategic choice of companies as a leader and follower in [18].…”