Game Theory-Based Energy-Management Method Considering Autonomous Demand Response and Distributed Generation Interactions in Smart Distribution Systems

Abstract

This article presents a game-theoretic method for operation of a smart distribution grid equipped with distributed generation and demand response programs. The problem is formulated as a noncooperative game to investigate the impacts of distributed power supply and autonomous demand response in comparison to a centralized method. The main idea and key contribution of this article is the provision of a mathematically provable game theory-based method for the cooperation of distributed generation units and smart customers in a near-real distribution system considering the existing issues related to the operational limitations of the real power grids. To verify the proposed method, several case studies have been carried out and compared. The results show that the proposed method is effective in reducing the total cost and total power losses, and can also improve grid performance in terms of reactive power support, voltage profile, and load profile flattening.