IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v206y2020ics0360544220311245.html
   My bibliography  Save this article

An integrated two-level demand-side management game applied to smart energy hubs with storage

Author

Listed:
  • Sobhani, Seyed Omid
  • Sheykhha, Siamak
  • Madlener, Reinhard

Abstract

Energy hubs, an important component of future energy networks employing distributed demand-side management, can play a key role in enhancing the efficiency and reliability of power grids. In power grids, energy hub operators need to optimally schedule the consumption, conversion, and storage of available resources based on their own utility functions. In sufficiently large networks, scheduling an individual hub can affect the utility of the other energy hubs. In this paper, the interaction between energy hubs is modeled as a congestion game. Each energy hub operator (player) participates in a dynamic energy pricing market and tries to maximize his/her own payoff when satisfying energy demand. We propose a distributed algorithm based on a congestion game, which guarantees the existence of a Nash equilibrium. Furthermore, two different types of signaling are developed (price-based, load-based) and simulation results compared. Simulation results show that with the implementation of either setup the peak-to-average ratio between electricity networks and natural gas networks diminishes. An analysis of the results shows that either setup can dominate the other one with regard to generation costs, convergence rate, price level, and stability. Hence, energy providers and consumers can choose a favorable setup based on their respective needs.

Suggested Citation

  • Sobhani, Seyed Omid & Sheykhha, Siamak & Madlener, Reinhard, 2020. "An integrated two-level demand-side management game applied to smart energy hubs with storage," Energy, Elsevier, vol. 206(C).
    • Handle: RePEc:eee:energy:v:206:y:2020:i:c:s0360544220311245
    DOI: 10.1016/j.energy.2020.118017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544220311245
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2020.118017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Li, Kangping & Wang, Fei & Mi, Zengqiang & Fotuhi-Firuzabad, Mahmoud & Duić, Neven & Wang, Tieqiang, 2019. "Capacity and output power estimation approach of individual behind-the-meter distributed photovoltaic system for demand response baseline estimation," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    2. Mancarella, Pierluigi, 2014. "MES (multi-energy systems): An overview of concepts and evaluation models," Energy, Elsevier, vol. 65(C), pages 1-17.
    3. Motalleb, Mahdi & Ghorbani, Reza, 2017. "Non-cooperative game-theoretic model of demand response aggregator competition for selling stored energy in storage devices," Applied Energy, Elsevier, vol. 202(C), pages 581-596.
    4. Aghamohamadi, Mehrdad & Mahmoudi, Amin, 2019. "From bidding strategy in smart grid toward integrated bidding strategy in smart multi-energy systems, an adaptive robust solution approach," Energy, Elsevier, vol. 183(C), pages 75-91.
    5. Yu Huang & Weiting Zhang & Kai Yang & Weizhen Hou & Yiran Huang, 2019. "An Optimal Scheduling Method for Multi-Energy Hub Systems Using Game Theory," Energies, MDPI, vol. 12(12), pages 1-20, June.
    6. Lu, Qing & Lü, Shuaikang & Leng, Yajun, 2019. "A Nash-Stackelberg game approach in regional energy market considering users’ integrated demand response," Energy, Elsevier, vol. 175(C), pages 456-470.
    7. Noor, Sana & Yang, Wentao & Guo, Miao & van Dam, Koen H. & Wang, Xiaonan, 2018. "Energy Demand Side Management within micro-grid networks enhanced by blockchain," Applied Energy, Elsevier, vol. 228(C), pages 1385-1398.
    8. Wang, Jianxiao & Zhong, Haiwang & Ma, Ziming & Xia, Qing & Kang, Chongqing, 2017. "Review and prospect of integrated demand response in the multi-energy system," Applied Energy, Elsevier, vol. 202(C), pages 772-782.
    9. Sheikhi, Aras & Bahrami, Shahab & Ranjbar, Ali Mohammad, 2015. "An autonomous demand response program for electricity and natural gas networks in smart energy hubs," Energy, Elsevier, vol. 89(C), pages 490-499.
    10. Vahabi, Ali Reza & Latify, Mohammad Amin & Rahimiyan, Morteza & Yousefi, G. Reza, 2018. "An equitable and efficient energy management approach for a cluster of interconnected price responsive demands," Applied Energy, Elsevier, vol. 219(C), pages 276-289.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wolff, Stefanie & Madlener, Reinhard, 2019. "Charged up? Preferences for Electric Vehicle Charging and Implications for Charging Infrastructure Planning," FCN Working Papers 3/2019, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    2. Nguyen, Hai-Tra & Safder, Usman & Loy-Benitez, Jorge & Yoo, ChangKyoo, 2022. "Optimal demand side management scheduling-based bidirectional regulation of energy distribution network for multi-residential demand response with self-produced renewable energy," Applied Energy, Elsevier, vol. 322(C).
    3. Dong, Zihang & Zhang, Xi & Strbac, Goran, 2021. "Evaluation of benefits through coordinated control of numerous thermal energy storage in highly electrified heat systems," Energy, Elsevier, vol. 237(C).
    4. Zhu, Xu & Sun, Yuanzhang & Yang, Jun & Dou, Zhenlan & Li, Gaojunjie & Xu, Chengying & Wen, Yuxin, 2022. "Day-ahead energy pricing and management method for regional integrated energy systems considering multi-energy demand responses," Energy, Elsevier, vol. 251(C).
    5. Li, Songrui & Zhang, Lihui & Nie, Lei & Wang, Jianing, 2022. "Trading strategy and benefit optimization of load aggregators in integrated energy systems considering integrated demand response: A hierarchical Stackelberg game," Energy, Elsevier, vol. 249(C).
    6. Artur Felipe da Silva Veloso & José Valdemir Reis Júnior & Ricardo de Andrade Lira Rabelo & Jocines Dela-flora Silveira, 2021. "HyDSMaaS: A Hybrid Communication Infrastructure with LoRaWAN and LoraMesh for the Demand Side Management as a Service," Future Internet, MDPI, vol. 13(11), pages 1-45, October.
    7. Ting Zhang & Shuaishuai Cao & Lingying Pan & Chenyu Zhou, 2020. "A Policy Effect Analysis of China’s Energy Storage Development Based on a Multi-Agent Evolutionary Game Model," Energies, MDPI, vol. 13(23), pages 1-35, November.
    8. Esmaeil Valipour & Ramin Nourollahi & Kamran Taghizad-Tavana & Sayyad Nojavan & As’ad Alizadeh, 2022. "Risk Assessment of Industrial Energy Hubs and Peer-to-Peer Heat and Power Transaction in the Presence of Electric Vehicles," Energies, MDPI, vol. 15(23), pages 1-24, November.
    9. Oskouei, Morteza Zare & Mohammadi-Ivatloo, Behnam & Abapour, Mehdi & Shafiee, Mahmood & Anvari-Moghaddam, Amjad, 2021. "Privacy-preserving mechanism for collaborative operation of high-renewable power systems and industrial energy hubs," Applied Energy, Elsevier, vol. 283(C).
    10. Qi, Haijie & Yue, Hong & Zhang, Jiangfeng & Lo, Kwok L., 2021. "Optimisation of a smart energy hub with integration of combined heat and power, demand side response and energy storage," Energy, Elsevier, vol. 234(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lu, Qing & Lü, Shuaikang & Leng, Yajun, 2019. "A Nash-Stackelberg game approach in regional energy market considering users’ integrated demand response," Energy, Elsevier, vol. 175(C), pages 456-470.
    2. Lasemi, Mohammad Ali & Arabkoohsar, Ahmad & Hajizadeh, Amin & Mohammadi-ivatloo, Behnam, 2022. "A comprehensive review on optimization challenges of smart energy hubs under uncertainty factors," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    3. Zheng, Shunlin & Sun, Yi & Li, Bin & Qi, Bing & Zhang, Xudong & Li, Fei, 2021. "Incentive-based integrated demand response for multiple energy carriers under complex uncertainties and double coupling effects," Applied Energy, Elsevier, vol. 283(C).
    4. Yuehao Zhao & Ke Peng & Bingyin Xu & Huimin Li & Yuquan Liu & Xinhui Zhang, 2018. "Bilevel Optimal Dispatch Strategy for a Multi-Energy System of Industrial Parks by Considering Integrated Demand Response," Energies, MDPI, vol. 11(8), pages 1-21, July.
    5. Liu, Tianhao & Tian, Jun & Zhu, Hongyu & Goh, Hui Hwang & Liu, Hui & Wu, Thomas & Zhang, Dongdong, 2023. "Key technologies and developments of multi-energy system: Three-layer framework, modelling and optimisation," Energy, Elsevier, vol. 277(C).
    6. Tsoumalis, Georgios I. & Bampos, Zafeirios N. & Biskas, Pandelis N. & Keranidis, Stratos D. & Symeonidis, Polychronis A. & Voulgarakis, Dimitrios K., 2022. "A novel system for providing explicit demand response from domestic natural gas boilers," Applied Energy, Elsevier, vol. 317(C).
    7. Li, Yang & Wang, Bin & Yang, Zhen & Li, Jiazheng & Chen, Chen, 2022. "Hierarchical stochastic scheduling of multi-community integrated energy systems in uncertain environments via Stackelberg game," Applied Energy, Elsevier, vol. 308(C).
    8. Mittelviefhaus, Moritz & Pareschi, Giacomo & Allan, James & Georges, Gil & Boulouchos, Konstantinos, 2021. "Optimal investment and scheduling of residential multi-energy systems including electric mobility: A cost-effective approach to climate change mitigation," Applied Energy, Elsevier, vol. 301(C).
    9. Matthew Gough & Sérgio F. Santos & Mohammed Javadi & Rui Castro & João P. S. Catalão, 2020. "Prosumer Flexibility: A Comprehensive State-of-the-Art Review and Scientometric Analysis," Energies, MDPI, vol. 13(11), pages 1-32, May.
    10. Ramos-Teodoro, Jerónimo & Rodríguez, Francisco & Berenguel, Manuel & Torres, José Luis, 2018. "Heterogeneous resource management in energy hubs with self-consumption: Contributions and application example," Applied Energy, Elsevier, vol. 229(C), pages 537-550.
    11. Zhou, Huansheng & Zheng, J.H. & Li, Zhigang & Wu, Q.H. & Zhou, X.X., 2019. "Multi-stage contingency-constrained co-planning for electricity-gas systems interconnected with gas-fired units and power-to-gas plants using iterative Benders decomposition," Energy, Elsevier, vol. 180(C), pages 689-701.
    12. Mohammadi, Mohammad & Noorollahi, Younes & Mohammadi-ivatloo, Behnam & Yousefi, Hossein, 2017. "Energy hub: From a model to a concept – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 1512-1527.
    13. Nima Mirzaei Alavijeh & David Steen & Zack Norwood & Le Anh Tuan & Christos Agathokleous, 2020. "Cost-Effectiveness of Carbon Emission Abatement Strategies for a Local Multi-Energy System—A Case Study of Chalmers University of Technology Campus," Energies, MDPI, vol. 13(7), pages 1-23, April.
    14. Wenting Zhao & Jun Lv & Xilong Yao & Juanjuan Zhao & Zhixin Jin & Yan Qiang & Zheng Che & Chunwu Wei, 2019. "Consortium Blockchain-Based Microgrid Market Transaction Research," Energies, MDPI, vol. 12(20), pages 1-22, October.
    15. Ding, Jianyong & Gao, Ciwei & Song, Meng & Yan, Xingyu & Chen, Tao, 2022. "Bi-level optimal scheduling of virtual energy station based on equal exergy replacement mechanism," Applied Energy, Elsevier, vol. 327(C).
    16. Batista, Natasha E. & Carvalho, Paulo C.M. & Fernández-Ramírez, Luis M. & Braga, Arthur P.S., 2023. "Optimizing methodologies of hybrid renewable energy systems powered reverse osmosis plants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 182(C).
    17. Moghaddam, Iman Gerami & Saniei, Mohsen & Mashhour, Elaheh, 2016. "A comprehensive model for self-scheduling an energy hub to supply cooling, heating and electrical demands of a building," Energy, Elsevier, vol. 94(C), pages 157-170.
    18. Zhou, Suyang & Sun, Kaiyu & Wu, Zhi & Gu, Wei & Wu, Gaoxiang & Li, Zhe & Li, Junjie, 2020. "Optimized operation method of small and medium-sized integrated energy system for P2G equipment under strong uncertainty," Energy, Elsevier, vol. 199(C).
    19. Li, Qi & Xiao, Xukang & Pu, Yuchen & Luo, Shuyu & Liu, Hong & Chen, Weirong, 2023. "Hierarchical optimal scheduling method for regional integrated energy systems considering electricity-hydrogen shared energy," Applied Energy, Elsevier, vol. 349(C).
    20. Dezhou Kong & Jianru Jing & Tingyue Gu & Xuanyue Wei & Xingning Sa & Yimin Yang & Zhiang Zhang, 2023. "Theoretical Analysis of Integrated Community Energy Systems (ICES) Considering Integrated Demand Response (IDR): A Review of the System Modelling and Optimization," Energies, MDPI, vol. 16(10), pages 1-22, May.

    More about this item

    Keywords

    Smart energy hub (SEH); Integrated demand-response program; Distributed demand-side management; Storage system;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:206:y:2020:i:c:s0360544220311245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.