Bilateral Electricity Trade Between Smart Grids and Green Datacenters: Pricing Models and Performance Evaluation

Abstract

Datacenter demand response is a promising approach for mitigating operational instability faced by smart grids. It enables significant potentials in peak load shedding and facilitates the incorporation of distributed generation and intermittent energy sources. This paper considers two key aspects toward real-time electricity pricing for eliciting demand response: 1) two-way electricity flow between smart grids and large datacenters with hybrid green generation capabilities and 2) the geo-distributed nature of large cloud systems, and hence the potential competition among smart grids that serve different datacenters of the cloud. We propose a pricing scheme tailored for geo-distributed green datacenters, from a multi-leader (smart grids) single-follower (cloud) game point of view. At the cloud side, in quest for scalability, robustness, and performance, the energy cost minimization problem is solved in a distributed manner, based on the technique of alternating direction method of multipliers. At the smart grid side, a practical equilibrium of the multi-leader single-follower pricing game is desired. To this end, we employ the technique of equilibrium problem with equilibrium constraints and exact linearization, to accurately transform the multi-leader single-follower pricing game, which is non-convex into a mixed integer linear system that can be readily solved. The effectiveness of the proposed solutions is evaluated based on the real datacenter workload traces and the IEEE 14-bus test systems with real generation and demand data.