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Buy or Sell? Energy Sharing of Prosumers on Constrained Networks

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 Added by Yue Chen
 Publication date 2019
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and research's language is English




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The advent of intelligent agents who produce and consume energy by themselves has led the smart grid into the era of prosumer, offering the energy system and customers a unique opportunity to revaluate/trade their spot energy via a sharing initiative. To this end, designing an appropriate sharing mechanism is an issue with crucial importance and has captured great attention. This paper addresses the prosumers demand response problem via energy sharing. Under a general supply-demand function bidding scheme, a sharing market clearing procedure considering network constraints is proposed, which gives rise to a generalized Nash game. The existence and uniqueness of market equilibrium are proved in non-congested cases. When congestion occurs, infinitely much equilibrium may exist because the strategy spaces of prosumers are correlated. A price-regulation procedure is introduced in the sharing mechanism, which outcomes a unique equilibrium that is fair to all participants. Properties of the improved sharing mechanism, including the individual rational behaviors of prosumers and the components of sharing price, are revealed. When the number of prosumers increases, the proposed sharing mechanism approaches social optimum. Even with fixed number of resources, introducing competition can result in a decreasing social cost. Illustrative examples validate the theoretical results and provide more insights for the energy sharing research.

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With the advent of prosumers, the traditional centralized operation may become impracticable due to computational burden, privacy concerns, and conflicting interests. In this paper, an energy sharing mechanism is proposed to accommodate prosumers strategic decision-making on their self-production and demand in the presence of capacity constraints. Under this setting, prosumers play a generalized Nash game. We prove main properties of the game: an equilibrium exists and is partially unique; no prosumer is worse off by energy sharing and the price-of-anarchy is 1-O(1/I) where I is the number of prosumers. In particular, the PoA tends to 1 with a growing number of prosumers, meaning that the resulting total cost under the proposed energy sharing approaches social optimum. We prove that the corresponding prosumers strategies converge to the social optimal solution as well. Finally we propose a bidding process and prove that it converges to the energy sharing equilibrium under mild conditions. Illustrative examples are provided to validate the results.
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