A non cooperative game theoretic approach for energy management in MV grid

Abstract

Demand-side management (DSM) is one of the key functionality of the future power grid as it enables the user to control the energy consumption for an efficient and sustainable allocation of the energy resources. In addition, the DSM promotes the integration of the new renewable sources power generation systems in the traditional electrical grid, improving the balance between local supply and energy demand. This paper proposes a novel DSM technique based on a non-cooperative game framework, to reduce the Peak to Average Ratio (PAR) of the power system, minimizing daily electricity payment of each consumer in the geographical area. Each consumer is considered like a player in an energy game and he/she is encouraged to re-schedule the energy consumption, applying an MPSO algorithm to shift in time those loads occurring during peak consumption periods. The dynamic pricing policy applied by the energy providers, leads each player to adopt the best strategy among its Pareto scheduling solutions, to minimize the energy peak in the overall load demand of a geographical area. Simulation results confirm the effectiveness of this distributed game theoretical approach to the DSM problem. An appreciable PAR reduction is achieved at the price of a low information exchange between the energy provider and each consumer, keeping the user privacy safe and minimizing the overhead of signaling information over the network.