Dynamic Price-Enabled Strategic Energy Management Scheme in Cloud-Enabled Smart Grid

In this work, the problem of high-quality energy service provisioning in the presence of competitive prosumers and microgrids in cloud-enabled smart grid is studied. Oligopolistic prosumers behave non-cooperatively and store the excess generated energy for future use, which increases the load on the main grid and degrades the performance of the smart grid. To address this issue, we propose a dynamic cloud-based pricing scheme, named SmartPrice, to enforce cooperation among the prosumers for ensuring high quality of service provided by the micro-grids. In SmartPrice, using cloud infrastructure, each micro-grid calculates a reward factor for each prosumer based on his/her behavior to enforce cooperation among them. We model the interaction between each micro-grid and the prosumers using a single-leader-multiple-followers Stackelberg game, where the micro-grids and the prosumers act as the leaders and the followers, respectively. Each micro-grid determines the unit energy price to be charged/paid and each prosumer determines the quantity of excess energy to be supplied for ensuring high revenue. Thus, SmartPrice enforces cooperation among the micro-grids and prosumers. Additionally, using SmartPrice, the price for unit energy charged from the prosumers reduces by 23.37-35:63%, thereby ensuring high revenue and the number of prosumers served by the micro-grids increases by 38.19-53:14%.

Automated summary

The problem of high-quality energy service provisioning in the presence of competitive prosumers and microgrids in cloud-enabled smart grid is studied. A dynamic cloud-based pricing scheme named SmartPrice is proposed to enforce cooperation among prosumers and improve the performance of the smart grid. The use of SmartPrice reduces the unit energy price charged from the prosumers and increases the number of prosumers served by the microgrids.