Application of Cooperative Game Theory in Smart Grids
Date
2019-12
Authors
Vottem, Spandana
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Nowadays, as the conventional grid cannot handle the technology, the smart grid
is introduced to provide two-way communication between utility and customers to meet
the energy requirements. In general, prosumers trade the locally produced energy using
the NRG-X-Change mechanism and receive payment depending on their contribution
individually. In this research, we study the different scenarios of trading energy in which
all prosumers of the same grid are coalited. Firstly, we adopt one of the game-theoretic
approaches called ‘Co-operative game theory’ to analyze all scenarios of prosumers’
coalition. Secondly, we consider three pricing functions such as concave, linear and
convex, and analyze the behavior of each pricing function with hypothetical values on the
prosumers’ coalition. Shapley value is calculated to show the benefits obtained by the
prosumers’ coalition. In this research, we consider the average energy production and
consumption data from Pecan Street Inc. for three seasons in a year such as Fall, Spring,
and Winter. The results show that coalitions are profitable only when we consider the
convex pricing function, whereas linear and concave are not profitable. By calculating the
Shapley value, we conclude that price function ‘g’ is maximized only if production is
twice greater than consumption.
Description
Keywords
Coopeartive game theory, Smart grids, Prosumer, Shapley value
Citation
Vottem, S. (2019). <i>Application of cooperative game theory in smart grids</i> (Unpublished thesis). Texas State University, San Marcos, Texas.