Chen, Yue and Zhao, Changhong and Low, Steven H. and Mei, Shengwei (2021) Approaching Prosumer Social Optimum via Energy Sharing With Proof of Convergence. IEEE Transactions on Smart Grid, 12 (3). pp. 2484-2495. ISSN 1949-3053. doi:10.1109/tsg.2020.3048402. https://resolver.caltech.edu/CaltechAUTHORS:20210113-163505633
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Abstract
With the advent of prosumers, the traditional centralized operation may become impracticable due to computational burden, privacy concerns, and conflicting interests. In this article, an energy sharing mechanism is proposed to accommodate prosumers’ strategic decision-making on their self-production and demand in the presence of capacity constraints. Under this setting, prosumers play a generalized Nash game. We prove main properties of the game: an equilibrium exists and is partially unique; no prosumer is worse off by energy sharing and the price-of-anarchy is 1−O(1/I) where I is the number of prosumers. In particular, the PoA tends to 1 with a growing number of prosumers, meaning that the resulting total cost under the proposed energy sharing approaches social optimum. We prove that the corresponding prosumers’ strategies converge to the social optimal solution as well. Finally we propose a bidding process and prove that it converges to the energy sharing equilibrium under mild conditions. Illustrative examples are provided to validate the results.
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Alternate Title: | Approaching Prosumer Social Optimum via Energy Sharing Mechanism with Proof of Convergence | ||||||||||||||
Additional Information: | © 2020 IEEE. Manuscript received June 18, 2020; revised October 17, 2020 and December 13, 2020; accepted December 24, 2020. Date of publication December 31, 2020; date of current version April 21, 2021. The work of Yue Chen and Shengwei Mei was supported by Shanxi Province Key Research and Development Project under Grant 201903D421029. The work of Changhong Zhao was supported in part by CUHK Research Startup Fund, and in part by the RGC Early Career Award under Grant 24210220. The work of Steven H. Low was supported by U.S. National Science Foundation under Grant CCF 1637598, Grant ECCS 1931662, and Grant CPS ECCS 1739355. Paper no. TSG-00927-2020. | ||||||||||||||
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Subject Keywords: | Energy sharing, generalized Nash equilibrium, prosumer, bidding algorithm, distributed mechanism | ||||||||||||||
Issue or Number: | 3 | ||||||||||||||
DOI: | 10.1109/tsg.2020.3048402 | ||||||||||||||
Record Number: | CaltechAUTHORS:20210113-163505633 | ||||||||||||||
Persistent URL: | https://resolver.caltech.edu/CaltechAUTHORS:20210113-163505633 | ||||||||||||||
Official Citation: | Y. Chen, C. Zhao, S. H. Low and S. Mei, "Approaching Prosumer Social Optimum via Energy Sharing With Proof of Convergence," in IEEE Transactions on Smart Grid, vol. 12, no. 3, pp. 2484-2495, May 2021, doi: 10.1109/TSG.2020.3048402 | ||||||||||||||
Usage Policy: | No commercial reproduction, distribution, display or performance rights in this work are provided. | ||||||||||||||
ID Code: | 107470 | ||||||||||||||
Collection: | CaltechAUTHORS | ||||||||||||||
Deposited By: | George Porter | ||||||||||||||
Deposited On: | 14 Jan 2021 18:35 | ||||||||||||||
Last Modified: | 03 May 2021 22:35 |
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