Game Theoty Model Based Demand Response Management And Pricing Strategy In Smart Grid

With the rapid development of human society, demand for electricity keeps on growing dramatically. However, development of power grid is severely hampered by the increasing pressure of global resources and environment, which lead to increasingly grim electricity crisis. In order to relieve this crisis, researches on future smart grid are actively carried out world-widely. One of the key features of the smart grid is its flexible demand response management mechanism, which can achieve important objectives like stabilizing the grid, optimizing the grid’s economical operations and allocating the resource appropriately. In demand response management mechanism, one of the key issues is the pricing strategy, which affects users’ demand response and distribution of the interests of all parties involved in the power market.Considering the importance of demand response management for optimal energy scheduling and operational benefits in smart grid, strategic interaction models between user’s demand scheduling and utility company’s power supply are established in this thesis. The models are based on the game theory from microeconomics and capture the case that the users and the utility company are cooperative and the case that they are non-cooperative, respectively. Further based on these models, the corresponding optimal demand response management mechanism and the optimal pricing strategy are studied, which can achieve both the stable energy-trading between users and utility company and the optimally operational benefits of smart grid. The main work and contributions of the thesis are summarized as follows:Firstly, a model of the micro smart grid model, which is in accordance with the principles of economical operations, is described. The model includes the basic components of the utility, cost, payment, and interests, etc. In addition, the principle of two game models is introduced briefly.Secondly, under the assumption that the players of the game only with individual rationality, and they jointly adjust demand and price to maximize their own interests, a non-cooperative game model for demand response and pricing strategy is established. Then, an algorithm to derive the equilibrium of the game is proposed, which is based on Particle Swarm Search Algorithm.Thirdly, suppose that all the players in the game reach an agreement to collaborate. With the constraints of the agreement, all players work cooperatively to optimize the interest of whole society. Under the assumption above, a cooperative game model is established, which is based on the idea of the Nash bargaining solution. The model is further converted into a convex optimization problem. Then, a distributed algorithm based coordinate ascent method is used to solve the problem.Fourthly, numerical simulations are carried out and compared. Specifically,1) simulate and analyze the demand response and pricing strategy of non-cooperative game, and then get the equilibrium point of non-cooperative game;2) simulate and analyze the demand response and pricing strategy for cooperative game under the same simulation environment as non-cooperative game, and then calculate the Nash bargaining solution;3) Through comparing and analyzing the above two game models with the metrics like the utilization of resources, the distribution of benefits, the costs and the effectiveness, pointed out the advantages of cooperative game.Finally, summary of the whole thesis and future work are presented.