Game-Theoretic Models of Dynamic Pricing in Microgrids with Distributed Generation Sources

The chapter is devoted to the development of theoretical and methodological bases for stimulating the active behavior of local Microgrid systems with distributed generation (DG) sources separately, as active consumers (prosumers), as part of and as individual generating facilities of UPS of Ukraine. Each type of Distributed Energy Resources (DER) including Energy Storage Systems is carefully examined as a part of Microgrid infrastructure. All layer interconnections, characteristics and functioning peculiarities are examined for each type of DER. It is shown that for different types of DER and ESS/prosumers different types of DSM programs and tariffs should be applied. At the same time in order to optimize the procedure of aggregation of DER and ESS/prosumers into a Microgrid systems the two step interaction model is proposed. In the first stage each DER and ESS/prosumer chooses one of the proposed strategies of operation and on the second stage the aggregator analyzes the chosen strategies and makes payments. Taking into account the differences between different types of DER and ESS/prosumer the two steps model is improved into three step model and formalized as a signaling game where at the first stage each player of the game sends the information about its type to the Microgrid aggregator after which the mentioned above two step model is applied. In this chapter of the monograph, the game-theoretic model of stimulation of strategic behavior of DER and ESS/prosumers as part of Microgrid systems is presented. The proposed model of signaling game takes into account different types of DER and ESS/prosumers such as “Non controllable DER”, “Controllable DER” and “DER with storage system / ESS”. For each type of DER different strategies are proposed and different payment mechanisms are considered for the active behavior achievement and the development of storage systems for its technical support.