A Real-Time Pricing Scheme for Energy Management in Integrated Energy Systems: A Stackelberg Game Approach

Abstract

This paper proposes a real-time pricing scheme for the demand response management between one energy provider and multiple energy hub operators. A promising energy trading scenario has been designed for the near future integrated energy system. The Stackelberg game approach was employed to capture the interactions between the energy provider (leader) and energy consumers (follower). A distributed algorithm was proposed to derive the Stackelberg equilibrium, then, the best strategies for the energy provider and each energy hub operator were explored in order to maximize their benefits. Simulation results showed that the proposed method can balance the energy supply and demand, improve the payoffs for all players, as well as smooth the aggregated load profiles of all energy consumers.