Maximizing the Utilization of Demand Response in Multi-Microgrids: A Game-Theoretic Approach

The existing body of literature pertaining to incentive-based demand-side management within microgrids, driven by market dynamics, has predominantly concentrated on the minimization of operational expenses. This focus, however, has omitted a comprehensive analysis of the competitive dynamics inherent in decentralized energy markets. As a result, discernible indications of sub-optimal performance in practice has surfaced. To address this gap, this study employs principles rooted in non-cooperative game theory to elucidate behavioral uncertainties. The present paper introduces an anticipatory, aggregator-mediated framework for demand response scheduling, fully integrated into an optimal dispatching problem governing interconnected multi-microgrids. Through application to an illustrative multi-microgrid system, the outcomes underscore the efficacy of this proposed model in achieving an optimal equilibrium between internal demand response utilization and electricity importation. Notably, the model addresses the epistemological uncertainties stemming from an incomplete understanding of behavioral patterns exhibited by key stakeholders – utilities, load aggregators, and end-consumers. Numerical findings highlight the potential of the model to curtail the daily operational costs of the case study system by a24%.