Modelling of market equilibrium on the basis of Smart Grid market system decomposition

Abstract

The structural decomposition of the Smart Grid market equilibrium model is suggested for the ‘Top-Level Market’ and ‘Smart City’ local systems. Modelling of the ‘Top-Level Market’ system is implemented at the central level and is provided by the methods of solving nonlinear complementarity problems of large dimension with the reproduction of the competitive Cournot game. Modelling of ‘Smart City’ systems is fulfilled at the local levels by methods of solving mixed integer modelling problems with the reproduction of competitive Bertrand's games. A mathematical model of the ‘Smart City’ system is proposed, which shows the peculiarities of balancing the supply and demand in the system in the presence of limited capacity of electricity storage. The model reflects the interaction of the ‘Smart City’ system with the ‘Top-Level Market’ system. The computational experiments show the adequacy of the results of modelling of ‘Smart City’ systems.