Demand-Side Management (DSM) in Smart Grid Using Game Theory

1. Demand-Side Management (DSM) in Smart Grid Using Game Theory Eran Salfati and Prof. Raul Rabinovici Ben-Gurion University 2013

2. Contents Introduction. Game Theory as a tool for DSM. Related Works. DSM Control System Model. Performance Demonstration. Summary.

3. Contents Introduction. Game Theory as a tool for DSM. Related Works. DSM Control System Model. Performance Demonstration. Summary.

4. Introduction – The Fundamental Problem Smart Meter + ECC(Energy Consumption Controller)

5. Introduction – Smart Grid NIST Smart Grid Framework An electrical power system which use communication and information technology.

6. Introduction – Research Topics in Smart Grid Automated Sensors and Controls. Advanced Metering Infrastructure (AMI). Demand-Side Management (DSM). Clean Energy Sources. Energy Storage. Grid Reliability. Communication System. Cyber Security. Standards.

7. Introduction – Demand-Side Management

8. Introduction – Demand-Side Management DSM Consumption Management Reducing Consumption DSM Algorithms Smart Meters Green Building Awareness Incentives Efficient Appliances

9. Introduction – The Motivation to use Game Theory Game Theory is a strategic analysis of situations involving a number of factors (Players) aspires for different purposes. Game Theory naturally provides a distributed decision models. Game theory provides a natural framework for developing pricing mechanisms which provide the subscribers the incentives to cooperate.

10. Introduction – Thesis Objective Study how to implement relevant Game Theory tools for Demand Side Management in Smart Grids. Propose a Control System Model for Demand-Side Management in Smart Grid Using Game Theory to solve the fundamental problem.

11. Contents Introduction. Game Theory as a tool for DSM. Related Works. DSM Control System Model. Performance Demonstration. Summary.

12. Game Theory as a tool for DSM Rationality Dynamic Games Pure Strategy Cooperative Games Complete Information Mixmax Incomplete Information Mechanism Design Cake Cutting Mixed Strategy Extensive-form Games Zero-Sum Games Sequential Games Problem Modeling Static Games Repeated Games Perfect Information Atomic Games Non-Cooperative Games Pareto Efficiency Symmetric Games Incentives Fair Division Normal-form Games Strategies Dominant Strategy Stochastic Games Nash Equilibrium Simultaneous Games

13. Game Theory for DSM – Mechanism Design

14. Game Theory for DSM – Fair Division

15. Game Theory for DSM – Fair Division

16. Contents Introduction. Game Theory as a tool for DSM. Related Works. DSM Control System Model. Performance Demonstration. Summary.

17. Related Works – Consumption Scheduling Subscribers Hours Appliances

18. Related Works – Consumption Scheduling Example:

19. Related Works – Consumption Scheduling Without Algorithm Total Daily Cost = 86.47$

20. Related Works – Consumption Scheduling With Algorithm Total Daily Cost = 53.81$

21. Related Works – Real Time Algorithm

22. Related Works – Real Time Algorithm Aggregate Load and Generation:

23. Related Works – Open Issues Is Real-Time Pricing really works? What's the connection between the calculated values to the real ones? Is utility function intuitively characterizing the consumer preferences? Is the algorithm can implement practical? Is coupling between subscribers is fair?

24. Contents Introduction. Game Theory as a tool for DSM. Related Works. DSM Control System Model. Performance Demonstration. Summary.

25. DSM Control System –The System Goals • Control System Model for Demand-Side Management in Smart Grid Using Game Theory. • The Model should include: • Practical Consumer Characterization Method. • An Algorithm for Fair Consumption Allocation. • An Energy Consumption Controller.

26. DSM Control System – System Model Limited Energy Source LAN Power Line ECC1 ECC2 ECCn

27. DSM Control System – System Model ComputedConsumption ActualConsumption Fair Division Allocation ECC Home Consumption Err + - MeasuredConsumption Consumption Measure

28. DSM Control System – Asynchronous Consumption Mode (ACM) Synchronous Transfer Mode Vs.Asynchronous Transfer Mode STM CBR - Constant Bit Rate UBR – Unspecified Bit Rate UBR ABR - Available Bit Rate ATM ABR VBR VBR - Variable Bit Rate CBR CBR - Constant Bit Rate

29. DSM Control System – Consumer Characterization CCR – Constant Consumption Rate ACR – Available Consumption Rate UCR – Unspecified Consumption Rate

30. DSM Control System –Fair Division

31. DSM Control System – Energy Consumption Controller (ECC) Source Measurement Consumer Characterization Parameters Energy Consumption Control ECC Supply Measure Supply Measure Supply Measure A1 A2 An

32. Contents Introduction. Game Theory as a tool for DSM. Related Works. DSM Control System Model. Performance Demonstration. Summary.

33. Performance –Consumer Characterization Total Shared Resource Capacity: 4.5kW

34. Performance –Consumer Characterization

35. Performance –Fair Division Allocation

36. Performance –Consumption Control Loop Total Consumption With Algorithm:

37. Performance –Consumption Control Loop Total Consumption Without Algorithm:

38. Performance –Consumption Control Loop Subscriber 1 appliances

39. Performance –Consumption Control Loop Subscriber 2 appliances

40. Contents Introduction. Game Theory as a tool for DSM. Related Works. DSM Control System Model. Performance Demonstration. Summary.

41. Summary • We study relevant Game Theory tools for DSM. • We proposed the Asynchronous Consumption Method. • We proposed practical, simple and intuitive consumer characterization. • We used the fair division method to make a fair allocation of the shared resource. • We emphasize the need for well-design price profile to motivate truthfulness. • We proposed a closed loop system model for consumption management.

42. Thanks for listening Eran Salfati and Prof. Raul Rabinovici

43. Game Theory for DSM – Fair Division