Supply-Demand Collaborative Energy Internet for Smart City: A Three-Stage Stackelberg Game Approach

Abstract

In order to provide green and reliable energy services, Energy Internet (EI) is integrated in smart city. In this paper, a supply-demand EI model is established. To realize efficient energy management, a three-stage Stackelberg game model is established. In the three-stage model, ISO is the leader, retailer is the follower of ISO and microgrids are the followers of retailer. In the first stage, independent system operator (ISO) decides the wholesale price and power generating plan to maximize social welfare and minimize electricity generation cost. In the second stage, retailer sets retail price to maximize its profit. The third stage is modeled as a microgrid inner energy schedule problem, which considers operation cost, emission cost and utility of consumption. Finally, a game theory besed energy management scheme of EI is proposed. Results are illustrated by numerical simulations, which show effectiveness of the proposed energy management scheme.