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In this paper, a green wireless communication system in which base stations are powered by renewable energy sources is considered. This system consists of a capacity-constrained renewable power supplier (RPS) and a base station (BS) that faces a predictable random connection demand from mobile user equipments (UEs). In this model, the BS, which is powered via a combination of a renewable power source and the conventional electric grid, seeks to specify the renewable power inventory policy, i.e., the power storage level. On the other hand, the RPS must strategically choose the energy amount that is supplied to the BS. An M/M/1 make-to-stock queuing model is proposed to investigate the decentralized decisions when the two parties optimize their individual costs in a noncooperative manner. The problem is formulated as a noncooperative game whose Nash equilibrium (NE) strategies are characterized to identify the causes of inefficiency in the decentralized operation. A set of simple linear contracts are introduced to coordinate the system so as to achieve an optimal system performance. The proposed approach is then extended to a setting with one monopolistic RPS and N BSs that are privately informed of their optimal energy inventory levels. In this scenario, we show that the widely used proportional allocation mechanism is no longer socially optimal. To make the BSs truthfully report their energy demand, an incentive compatible (IC) mechanism is proposed for our model. Simulation results show that using the green energy can present significant traditional energy savings for the BS when the connection demand is not heavy. Moreover, the proposed scheme provides valuable energy cost savings by allowing the BSs to smartly use a combination of renewable and traditional energy, even when the BS has a heavy traffic of connections. Also, the results show that performance of the proposed IC mechanism will be close to the social optimal when the green energy production capacity increases.

Decentralized Energy Allocation for Wireless Networks With Renewable Energy Powered Base Stations