access icon free Cooperative demand-side management scenario for the low-voltage network in liberalised electricity markets

© The Institution of Engineering and Technology
Received 11/05/2018, Accepted 28/09/2018, Revised 27/08/2018, Published 11/10/2018

This work presents a cooperative demand-side management (DSM) scenario in a low-voltage network considering a context of liberalised electricity markets. The authors show that introducing an additional inter-supplier cooperation mechanism among consumers enhances a better use of the flexibility consented by each individual, hence aiming at reaching a global optimum instead of optimising the costs of a few ones. To that end, a real-time pricing (RTP) scheme is explored based on cost functions differentiated in both time and consumption level that should reflect the true energy cost. The authors apply to each consumer a commodity cost function shared among the set of cooperative users of its respective supplier as well as one common network cost function shared by all cooperative users of all suppliers in the considered network. Each individual runs, through its smart meter (SM), a decentralised optimisation algorithm defining an energy consumption schedule for a set of flexible appliances (FAs). The mechanism the authors propose ensures that a fair cost distribution between all users is achieved by reaching the Nash equilibrium. To assess their proposition, they confront it to intermediate consumption strategies through a benchmark. The results confirm that their inter-supplier cooperation mechanism always leads to the minimum total cost.

Inspec keywords: game theory; power markets; demand side management; optimisation; power consumption; domestic appliances; smart meters

Other keywords: RTP scheme; flexible appliances; respective supplier; energy consumption schedule; smart meter; carbon footprint; decentralised optimisation algorithm; fair cost distribution; common network cost function; inter-supplier cooperation mechanism; Nash equilibrium; low-voltage network; renewable energy resources; intermediate consumption; real-time pricing scheme; commodity cost function; energy sector; cooperative demand side management; liberalised electricity markets

Subjects: Optimisation techniques; Power system management, operation and economics; Power system measurement and metering; Domestic appliances; Game theory

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