1. Stackelberg–Nash game approach for price-based demand response in retail electricity trading.
- Author
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Wan, Yanni, Qin, Jiahu, Shi, Yang, Fu, Weiming, and Xiao, Feng
- Subjects
- *
RETAIL industry , *ELECTRICITY markets , *PUBLIC utilities , *CONSUMPTION (Economics) , *ENERGY consumption , *DISTRIBUTED algorithms - Abstract
This paper studies the price-based demand response problem in a deregulated retail electricity trading, aiming to coordinate the energy consumption behavior of end-users under dynamic retail prices. The challenge here is that in addition to the hierarchical decision-making process between utility company and end-users considered in existing works, the non-cooperative and competitive interdependence among end-users cannot be ignored. To address this issue, we first construct a novel Stackelberg–Nash game, in which the Stackelberg game is used to capture the hierarchical decision-making process between utility company and end-users, while the Nash game is dedicated to describing the interdependence among end-users. Then the existence and uniqueness of the Stackelberg–Nash equilibrium is provided along with theoretical analysis. On the basis of the analysis of equilibrium, we propose a distributed iterative algorithm with an adaptive step size, which is benchmarked with a fixed step-size algorithm. The comparison results on a real-life residential retail electricity market show that our proposed algorithm has better performance in terms of effectiveness and scalability. • Develop a Stackelberg—Nash game model to characterize the interactive relationship. • Proof the existence and uniqueness of Stackelberg–Nash equilibrium. • Propose a distributed iterative algorithm with an adaptive step size. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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