Game-theoretical Energy Management Design For Microgrid

With the rapid development of the current social and economic issues, energy development and grid development become more and more prominent. Besides, positive role of renewable energy generation to sustainable development of society has gained more and more attention. Renewable energy generation which based on microgrid has been recognized as a relatively fast development of recent year’s new power supply. Microgrid is miniaturized, clean, self-oriented and friendly, which can effectively reduce the impact of large-scale distributed power access on the grid and it shows a huge potential for improving the flexibility and reliability of power system.Microgrid has big difference with the traditional power system in the run mode and power quality constraint conditions. It is necessary to study the energy management and operation scheduling optimization among traditional power grid microgrids, Microgrid operation is studied to reach the objectives of security, stability and reliability. Previous studies did not consider the relationship between power companies, microgrids and users. Here we take full account of the constraints of the relationship the use game theory to model.In this paper, we consider the energy management issues in a smart distribution system composed of energy source, utility company, MGs, customers, a power distribution network, and a communication network. The utility company has much lower electricity generation cost, higher generation capacity compared to MGs. On the other hand, MGs have lower pollutant emission cost and higher customer preference. The interactions and interconnections among the utility company, MGs, and customers are taken into consideration. We consider two different situations depending on the market positions of the utility company and model the energy management problem as a two-stage Stackelberg game and a three-stage Stackelberg game, respectively. In the two-stage Stackelberg game, utility companies and MGs are game leaders, and customers are game followers. In the three-stage Stackelberg game, the utility company is the game leader, and MGs and customers are game followers. The backward induction method is used to analyze the proposed games and closed-form expressions are derived. Simulation results show the effectiveness of the proposed algorithm and the relationships among system parameters.