Transactive Energy for Flexible Prosumers Using Algorithmic Game Theory

Abstract

<div>In modern smart grids, the focus is increasingly shifted towards distributed energy resources and flexible electricity assets owned by prosumers. A system with high penetration of flexible prosumers, has a very large number of variables and constraints, while a lot of the information is local and non-observable. Decomposition methods and local problem solving is considered a promising approach for such settings, particularly when the implementation of a decomposition method features a market-based analogy, i.e. it can be implemented in a Transactive Energy fashion.</div><div>In this paper we present an auction-theoretic scheme for a setting with non-convex prosumer models and resource constraints. The scheme is evaluated on a particular case study and its scalability and efficiency properties are tested and compared to an optimal benchmark solution. A game-theoretic analysis is made with respect to how an intelligent agent, that bids on behalf of a prosumer can try to strategize within the auction, in order to make itself better-off. Our simulations show that there is an alignment of incentives, i.e., when the prosumers try to strategize, they actually improve the auction's efficiency. </div>

Optimal operation of small, numerous, and disparate DERs via aggregation in transactive distribution systems with universal metering

“…Recently, there are several attempts to consider the optimal operation of numerous DERs in a transactive energy framework [15][16][17][18]. An operational framework to enable the optimal participation of prosumer balancing power services, adopting the concept of network-constrained transactive energy system is developed in [15].…”

“…The subset ( 18)-( 22) models the operation of ES devices as part of the aggregated DERs. The ES power interaction is calculated in (18) in terms of the power charged and discharged from the ES, while ( 19) and ( 20) calculate the losses due to charging and discharging, respectively. Moreover, (21) calculates the energy stored at each time interval, as (22) ensures that energy limits are always fulfilled.…”

“…In [17], a retail market is developed based on distributed proximal atomic coordination algorithm to schedules the DERs. A transactive combinatorial auction for a community of prosumers based on game theory is presented in [18].…”

Distributed control strategy for transactive energy prosumers in real‐time markets

“…An optimal bidding framework is proposed in [11] for a regional energy internet to participate in day-ahead markets considering carbon trading. An auction-theoretic scheme is presented for prosumer models and resource constraints in [12]. An energy sharing mechanism is proposed in [13] to accommodate prosumers' strategic decision-making on their self-production and demand in the presence of capacity constraints.…”

Comprehensive platform for distribution transactive energy markets

“…From the perspective of TES participants, [15] introduced an operational framework to enable the optimal participation of prosumer balancing power services, adopting the concept of network‐constrained TES. Recently, a transactive combinatorial auction for a community of prosumers based on game theory is proposed in [16].…”