Design of Transactive Control Strategies in the Electricity Market: The Leader-Follower Game Approaches

Abstract

Present work is an attempt towards designing the transactive control strategies based upon leader-follower game approach in coupled constraint electricity market. Each utility company which participates in the game is associated with an asymmetric quadratic cost function. Two situations are considered in the work. The strategy design of each participating company, in Situation 1, is developed using Stackelberg leader-follower model of game theory. Situation 2 explains how leader company searches its optimal solution for the defined objective function with given constraints in the demarcated search space to maximize its profit and the grey wolf optimizer algorithm has been used. A comparative study has been carried out in terms of price, production and profit with the results as obtained from aforesaid situations and presented in this work.