Application of Cooperative Game Theory in Smart Grids




Vottem, Spandana

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Nowadays, as the conventional grid cannot handle the technology, the smart grid is introduced to provide two-way communication between utility and customers to meet the energy requirements. In general, prosumers trade the locally produced energy using the NRG-X-Change mechanism and receive payment depending on their contribution individually. In this research, we study the different scenarios of trading energy in which all prosumers of the same grid are coalited. Firstly, we adopt one of the game-theoretic approaches called ‘Co-operative game theory’ to analyze all scenarios of prosumers’ coalition. Secondly, we consider three pricing functions such as concave, linear and convex, and analyze the behavior of each pricing function with hypothetical values on the prosumers’ coalition. Shapley value is calculated to show the benefits obtained by the prosumers’ coalition. In this research, we consider the average energy production and consumption data from Pecan Street Inc. for three seasons in a year such as Fall, Spring, and Winter. The results show that coalitions are profitable only when we consider the convex pricing function, whereas linear and concave are not profitable. By calculating the Shapley value, we conclude that price function ‘g’ is maximized only if production is twice greater than consumption.



Coopeartive game theory, Smart grids, Prosumer, Shapley value


Vottem, S. (2019). <i>Application of cooperative game theory in smart grids</i> (Unpublished thesis). Texas State University, San Marcos, Texas.


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