A game-theoretic economic operation of residential distribution system with high participation of distributed electricity prosumers

This paper proposes a game-theoretic framework for economic operations of future residential distribution systems with high participation of distributed electricity prosumers. Recently, the large-scale grid integration of distributed renewable energy is becoming a promising solution to restructuring the current power grid infrastructure and ensuring the reliability of energy supply. The wide adoption of distributed renewable energy mainly depends on the participation level of residential consumers and prosumers. Accordingly, there is an urgent need to investigate the economic operations of this new, highly complex retail electricity market that potentially has millions of interactive endpoints. This paper identifies the new roles of utilities and distributed electricity prosumers in the future retail electricity market. The game-theoretic algorithms used to clear the retail electricity market price consider the group coalition scenarios of multiple electricity prosumers. Several numerical case studies are conducted to illustrate and validate the proposed framework. (C) 2015 Elsevier Ltd. All rights reserved.