Non-Cooperative Equilibrium for Heterogeneous Demand-Side Flexible Resources in Retail Electricity Markets

The ever-increasing heterogeneity and population of demand-side flexible resources have brought challenges to the demand-side management. The decentralized coordination of the large population of heterogeneous demand-side resource, including electric vehicles (EVs), industrial flexible demands (IFDs), and thermostatically controlled loads (TCLs), is computationally hard. Therefore, this paper proposes a generalized flexibility model for the heterogeneous demand-side resources. Based on the generalized model, mean-field gamebased coordination method is adopted, where the existence and uniqueness of the non-cooperative equilibrium are proved. To obtain the equilibrium point in the retail electricity market, we proposed a Mann accelerated decentralized solution method to coordinate the strategic self-management. The algorithm is proved to converge to the $\varepsilon$-Nash equilibrium. The efficiency and scalability of the proposed method is validated in the retail electricity market containing 3000 demand-side resources.