Power Management of Intelligent Buildings Facilitated by Smart Grid: A Market Approach

The emergence of smart grid technology is offering a unique opportunity to improve power management in intelligent buildings through the integration and optimization of distributed energy resources and loads. In this paper, the interactions of multiple intelligent buildings in the context of energy market, as well as distributed energy generation and storage facilities, is considered. Within a time horizon divided into multiple periods in which generations and loads are forecasted, each building in a certain period may experience power surplus or deficit. While any deficit can be obtained from the market, buildings may consider selling their unused power back to the market. A dynamic pricing model based on differential game theory is set up in order to study the interactions of these players and how they maximize their profit. We also propose algorithms to implement and operate the system over the time horizon considered. Furthermore, numerical studies are performed to validate the model and algorithms.