Demand response aggregator stackelberg competition for selling stored energy

摘要

This work is concerned with the application of game-theoretic principles in a power market consisting of demand response aggregators which compete to sell energy stored in batteries to other aggregators. The amount and price of power transacted is controlled by the utility (as leader), and the sellers do not share information about their bidding strategy, or parameters determining their cost of providing the power, hence the competition takes the form of an incomplete-information Stackelberg game. The optimal bidding strategy for maximizing payoff is determined by the Nash equilibrium. The model is used to examine the effect of price-sensitive demand response scheduling by comparison with a similar game without scheduling. In an application to case study data from the island of Maui, USA, we show that the player who implements it markedly increases payoff compared to a player who does not.