Joint game-theoretical optimization for load aggregators in demand response market considering the breach of residential consumers

Abstract

Demand response (DR) with the participation of load aggregator (LA) has received extensive attention in recent years due to the increasing energy demand. However, LA has to face the risk that consumers may refuse to be controlled by LA due to the uncertainty of energy consumption on demand side. Therefore, this paper proposes a joint game-theoretical optimization for LAs in DR day-ahead market and intraday market considering the breach of residential consumers. In day-ahead market, LA will compete with other LAs and obtain the optimal bidding amount through a non-cooperative game process, to obtain the maximal self-profit. In intraday market, in order to make up for the breach amount of consumers, DR resource-deficit LAs can purchase resource from DR resource-surplus LAs via Nash bargaining process. Basically, Nash bargaining model is formulated and solved by translating the optimization problem into two sub-problems. Finally, a case study is performed to show the effectiveness of the proposed DR framework. Simulation results show that the whole profit of all LAs increases 25.9% compared with the scenario where LAs only participate in day-ahead market and will be punished by DR market due to the bidding breach.