Collaborative Decision Approach for Electricity Pricing-demand Response Stackelberg Game

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Demand response programs are considered as a valuable resource in smart grids that provide several advantages of load shifting, peak load reduction, mediating intermittency of renewable energy integration, etc. Flexible price-based incentives have been recognized as a critical strategy in motivating and compensating consumers' load adjustment actions for a successful implementation of demand response. Game theoretical approaches, especially Stackelberg games are popularly adopted to model the relationship between electricity price and customers' demand response and solved by the classical centralized backward induction (BI) method. However, the BI method generally requires convexity of the follower's model for necessary optimality conditions, and the computational time of any centralized approach increases sharply with larger problem instances. In this paper, the Stackelberg game of electricity pricing-demand response between a distribution system operator (DSO) and load aggregators (LAs) is decomposed based on a collaborative optimization (CO) framework, where each LA is treated as a discipline with its own domain constraints (e.g. building temperature control), while the DSO at the system level tries to reduce the solution discrepancy and guide the searching towards optimality. Several groups of comparison experiments have demonstrated the effectiveness of the proposed collaborative decision approach in solving the demand response game.

Original languageEnglish
Title of host publicationProceedings - 2021 IEEE SmartWorld, Ubiquitous Intelligence and Computing, Advanced and Trusted Computing, Scalable Computing and Communications, Internet of People, and Smart City Innovations, SmartWorld/ScalCom/UIC/ATC/IoP/SCI 2021
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages378-383
Number of pages6
ISBN (Electronic)9781665412360
DOIs
StatePublished - 2021
Event2021 IEEE SmartWorld, Ubiquitous Intelligence and Computing, Advanced and Trusted Computing, Scalable Computing and Communications, Internet of People, and Smart City Innovations, SmartWorld/ScalCom/UIC/ATC/IoP/SCI 2021 - Virtual, Online, United States
Duration: Oct 18 2021Oct 21 2021

Publication series

NameProceedings - 2021 IEEE SmartWorld, Ubiquitous Intelligence and Computing, Advanced and Trusted Computing, Scalable Computing and Communications, Internet of People, and Smart City Innovations, SmartWorld/ScalCom/UIC/ATC/IoP/SCI 2021

Conference

Conference2021 IEEE SmartWorld, Ubiquitous Intelligence and Computing, Advanced and Trusted Computing, Scalable Computing and Communications, Internet of People, and Smart City Innovations, SmartWorld/ScalCom/UIC/ATC/IoP/SCI 2021
Country/TerritoryUnited States
CityVirtual, Online
Period10/18/2110/21/21

Funding

This manuscript has been authored by UT-Battelle, LLC, under contract DE-AC05-00OR22725 with the US Department of Energy (DOE). The US government retains and the publisher, by accepting the article for publication, acknowledges that the US government retains a nonexclusive, paid-up, irrevocable, worldwide license to publish or reproduce the published form of this manuscript, or allow others to do so, for US government purposes. DOE will provide public access to these results of federally sponsored research in accordance with the DOE Public Access Plan (http://energy.gov/downloads/doe-public-access-plan) This study was supported by the US Department of Energy (DOE), Office of Energy Efficiency and Renewable Energy, Building Technologies Office under contract DE-AC05-00OR22725.

Keywords

  • Bilevel Optimization
  • Collaborative Optimization
  • Decomposition Based Approach
  • Demand Response
  • Stackelberg Game

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