Transactive Energy for Flexible Prosumers Using Algorithmic Game Theory

Georgios Tsaousoglou, Pierre Pinson, Nikolaos G. Paterakis

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

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. 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.
Original languageEnglish
JournalIEEE Transactions on Sustainable Energy
Number of pages11
ISSN1949-3029
DOIs
Publication statusAccepted/In press - 2021

Keywords

  • Flexibility
  • Transactive Energy
  • Algorithmic Game Theory
  • Auction

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