Open AccessA Stackelberg game‐inspired model of real‐time economic dispatch with demand response
Author(s) -
Shakrina Youssef,
Margossian Harag
Publication year - 2021
Publication title -
international transactions on electrical energy systems
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.428
H-Index - 42
ISSN - 2050-7038
DOI - 10.1002/2050-7038.13076
Subject(s) - stackelberg competition , microgrid , demand response , computer science , scheduling (production processes) , economic dispatch , mathematical optimization , operator (biology) , game theory , bilevel optimization , representation (politics) , electric power system , operations research , power (physics) , optimization problem , electricity , engineering , economics , microeconomics , control (management) , quantum mechanics , physics , electrical engineering , mathematics , repressor , algorithm , artificial intelligence , law , chemistry , biochemistry , political science , transcription factor , politics , gene
Summary The wide variety of customers in power grids makes it challenging for the network's operator to anticipate the new load in demand response (DR) programs. For optimal scheduling of generation units, this article presents a novel method for the operator to predict market prices and electrical load under a real‐time pricing (RTP) demand response program in a microgrid. Inspired by the Stackelberg game, the proposed model establishes simulated trading between the network's operator (leader) optimizing the generation cost and offering market prices to the customers (followers) who optimize their behavior. The model is formulated as a one‐leader, N‐follower iterative game where the optimization problems are solved using deterministic and stochastic optimization techniques. The proposed model considers a detailed representation of the power system as well as the industrial and residential loads. Simulations are performed on three microgrid systems where results show the significance of the detailed representation.