Energy Trading and Power Allocation Strategies for Relay-Assisted Smart Grid Communications: A Three-Stage Game Approach

Abstract

In smart grid, serious packet loss often occurs in the process of information interaction between the Utilities and customers, which results in supply-demand deviation and further increases the cost of the Utilities. In order to improve the information transmission performance of communication networks, the Utilities purchase relay service from telecom operator to help data aggregator units (DAU) transfer information to gateway (GW), so as to improve communication quality and reduce the cost of the Utilities. Secondly, in order to solve the problem of telecom operators' energy reduction and reduce the cost of purchasing energy, we utilize energy supply point (ESP) to collect the surplus energy of retail customers for energy supply, and telecom operator pays a certain amount of remuneration to ESP in exchange for ESP to continuously supply energy to telecom operator. Then, we establish a three-stage game method and system model between the Utilities, telecom operator and ESP, and propose the relay power allocation and energy transaction pricing strategy. Due to the real-time change of energy demand, we consider two situations of energy oversupply and conservative supply, and use the backward induction method and iterative algorithm to obtain the equilibrium solution of the Stackelberg game, including the unit energy price of ESP, total power of telecom operator, the proportion of transmission power allocated to the relay service, and payment scheme of the Utilities. Simulation results show that the proposed algorithm can quickly and accurately converge to the optimal solution of the problem, and the method can improve the stability of demand-side regulation, reduce the cost of the Utilities and increase the profit of telecom operator.