An Integrated Two-Level Demand-Side Management Game Applied to Smart Energy Hubs with Storage

FCN Working Paper No. 14/2018

32 Pages Posted: 31 Mar 2020

See all articles by S. Omid Sobhani

S. Omid Sobhani

Sharif University of Technology

Siamak Sheykhha

affiliation not provided to SSRN

Reinhard Madlener

RWTH Aachen University

Date Written: November 1, 2018

Abstract

The integration of energy hubs – as an important component of future energy networks that will employ demand-side management techniques – has a key role in the process of efficiency improvement and reliability enhancement of power grids. In such power grids, energy hub operators need to optimally schedule the consumption, conversion, and storage of available resources based on their own utility functions. In sufficiently large networks, scheduling an individual hub can affect the utility of the other energy hubs. In this paper, the interaction between energy hubs is modeled as a potential game. Each energy hub operator (player) participates in a dynamic energy pricing market and tries to maximize his own payoff with regard to energy consumption satisfaction. We propose a distributed algorithm based on a potential game, which guarantees the existence of a Nash equilibrium. Furthermore, two different types of signaling are developed and simulation results are compared. Simulation results show that with the implementation of either setup the peak-to-average ratio between electricity networks and natural gas networks diminishes. An analysis of the results shows that either setup can have superiority over the other one with regard to generation costs, convergence rate, price level, and the stability perspective. Hence, energy providers and consumers can choose a favorable setup based on their respective needs.

Keywords: Smart Energy Hub (SEH), Integrated Demand-Response Program, Distributed Demand-Side Management, Storage System

JEL Classification: C61, C72, Q31, Q41

Suggested Citation

Sobhani, S. Omid and Sheykhha, Siamak and Madlener, Reinhard, An Integrated Two-Level Demand-Side Management Game Applied to Smart Energy Hubs with Storage (November 1, 2018). FCN Working Paper No. 14/2018. Available at SSRN: https://ssrn.com/abstract=3549759 or http://dx.doi.org/10.2139/ssrn.3549759

S. Omid Sobhani

Sharif University of Technology ( email )

Tehran
Iran

Siamak Sheykhha

affiliation not provided to SSRN

Reinhard Madlener (Contact Author)

RWTH Aachen University ( email )

School of Business and Economics / E.ON ERC
Mathieustraße 10
Aachen, 52074
Germany
+49 241 80 49 820 (Phone)
+49 241 80 49 829 (Fax)

HOME PAGE: http://www.eonerc.rwth-aachen.de/fcn

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
5
Abstract Views
72
PlumX Metrics