CaltechAUTHORS
  A Caltech Library Service

Approaching Prosumer Social Optimum via Energy Sharing With Proof of Convergence

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

[img] PDF - Accepted Version
See Usage Policy.

928kB
[img] PDF (arXiv) - Accepted Version
See Usage Policy.

965kB

Use this Persistent URL to link to this item: https://resolver.caltech.edu/CaltechAUTHORS:20210113-163505633

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.


Item Type:Article
Related URLs:
URLURL TypeDescription
https://doi.org/10.1109/tsg.2020.3048402DOIArticle
https://arxiv.org/abs/2006.10332arXivDiscussion Paper
https://resolver.caltech.edu/CaltechAUTHORS:20210503-115704998Related ItemConference Paper
ORCID:
AuthorORCID
Chen, Yue0000-0002-7594-7587
Zhao, Changhong0000-0003-0539-8591
Low, Steven H.0000-0001-6476-3048
Mei, Shengwei0000-0002-2757-5977
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.
Funders:
Funding AgencyGrant Number
Shanxi Province Key Research and Development Project201903D421029
Chinese University of Hong KongUNSPECIFIED
Research Grants Council of Hong Kong24210220
NSFCCF-1637598
NSFECCS-1931662
NSFECCS-1739355
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

Repository Staff Only: item control page