A game-theoretic analysis of demand response in electricity markets

Ehsan Nekouei, Tansu Alpcan, Deb Chattopadhyay

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

8 Citations (Scopus)

Abstract

This paper presents a game-theoretic approach to demand response in electricity markets. A Stackelberg game model is developed to capture the interplay between a Demand Response Aggregator (DRA) and electricity generators, where the DRA acts the leader of the game and makes demand reduction bids by taking into account their profitability. The classical generators respond by adjusting their electricity generation levels which leads to an equilibrium solution of the resulting strategic (non-cooperative) game in the competitive wholesale electricity market. A numerical analysis of the Stackelberg game shows that highly concentrated markets during the peak hours are the most profitable scenarios for the demand response from the DRA's perspective.
Original languageEnglish
Title of host publication2014 IEEE PES General Meeting
PublisherIEEE
ISBN (Electronic)978-1-4799-6415-4
DOIs
Publication statusPublished - Jul 2014
Externally publishedYes
Event2014 IEEE Power and Energy Society General Meeting - National Harbor, United States
Duration: 27 Jul 201431 Jul 2014

Publication series

NameIEEE Power and Energy Society General Meeting
ISSN (Print)1944-9925

Conference

Conference2014 IEEE Power and Energy Society General Meeting
PlaceUnited States
CityNational Harbor
Period27/07/1431/07/14

Research Keywords

  • Demand Response
  • Electricity market
  • Game theory

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