TY - JOUR
T1 - Bargaining-based cooperative energy trading for distribution company and demand response
AU - Fan, Songli
AU - Ai, Qian
AU - Piao, Longjian
PY - 2018/9/15
Y1 - 2018/9/15
N2 - This paper studies the energy trading among flexible demand response aggregators (DRAs) and a distribution company (Disco) with self-owned generators. Instead of the conventional non-cooperative game based approach, the trading problem is formulated as a bargaining based cooperative model, where Disco and DRAs collaboratively decide the amounts of energy trade and the associated payments. This cooperative interaction can be beneficial to both Disco and DRAs, by reducing the aggregated peak demand and increasing the potential cost savings. The increased benefits from cooperation are fairly allocated among these participants, based on the Nash bargaining theory. Compared with the non-cooperative game based approach, the proposed bargaining cooperative model can further improve the benefits of Disco and DRAs. Moreover, the bargaining outcome can maximize the social welfare of the system. Considering the privacy and autonomy issues of participants, we utilize a decentralized solution to solve the bargaining problem, with minimum information exchange. Numerical studies demonstrate the effectiveness of the bargaining -based cooperative framework, and also show the improvement of benefits of the system.
AB - This paper studies the energy trading among flexible demand response aggregators (DRAs) and a distribution company (Disco) with self-owned generators. Instead of the conventional non-cooperative game based approach, the trading problem is formulated as a bargaining based cooperative model, where Disco and DRAs collaboratively decide the amounts of energy trade and the associated payments. This cooperative interaction can be beneficial to both Disco and DRAs, by reducing the aggregated peak demand and increasing the potential cost savings. The increased benefits from cooperation are fairly allocated among these participants, based on the Nash bargaining theory. Compared with the non-cooperative game based approach, the proposed bargaining cooperative model can further improve the benefits of Disco and DRAs. Moreover, the bargaining outcome can maximize the social welfare of the system. Considering the privacy and autonomy issues of participants, we utilize a decentralized solution to solve the bargaining problem, with minimum information exchange. Numerical studies demonstrate the effectiveness of the bargaining -based cooperative framework, and also show the improvement of benefits of the system.
KW - Aggregator
KW - Cooperative game
KW - Demand response
KW - Distribution company
KW - Economic interaction
KW - Nash bargaining
UR - http://www.scopus.com/inward/record.url?scp=85048168641&partnerID=8YFLogxK
U2 - 10.1016/j.apenergy.2018.05.095
DO - 10.1016/j.apenergy.2018.05.095
M3 - Article
SN - 0306-2619
VL - 226
SP - 469
EP - 482
JO - Applied Energy
JF - Applied Energy
ER -