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Optimal and Almost Optimal Strategies for Rational Agents in a Smart Grid

Authors:
Alexander Wallis
Sascha Hauke
Konstantin Ziegler

Keywords: smart grid, game theory, nash equilibrium, prosumer, battery energy storage system

Abstract:
The rising tide of single household prosumers leads to a paradigm shift for power grid operators. Those prosumers are characterized by their consumption, production and storage capabilities. Via buying and selling electricity, every prosumer becomes a rational agent in the smart grid, trying to maximize one’s utility. The optimal short- and long-term behavior can now be analyzed using methods of game theory. In this paper, we present a game theoretic model for smart grids with rational prosumers. Using real-world data, we equipped every agent with a growing class of strategies and then compute the resulting Nash equilibria. The differences in prosumers’ utility between optimal and almost optimal strategy selection is given as the price if not knowing the future.

Pages: 58 to 63

Copyright: Copyright (c) IARIA, 2021

Publication date: May 30, 2021

Published in: conference

ISSN: 2308-412X

ISBN: 978-1-61208-855-6

Location: Valencia, Spain

Dates: from May 30, 2021 to June 3, 2021