Finding Optimal Production and Selling Strategies for an Electricity Generator in a Part of a Country's Electrical Grid

AbstractA part of a country's electrical grid in which an electricity generator (which may consist of several base load power plants and several peaking power plants) supplies electricity to a set of large customers of the grid, whereas the customers can a) receive electricity from renewable sources of energy, b) store electricity in certain volumes, and c) buy electricity in the markets is considered. It is proposed to describe the interaction of the generator, the large grid customers, and the transmission company (under uncertainty of the customer demand for electricity) by a game with a finite (more than three) number of players on polyhedra of player strategies some of which are connected and thus cannot be chosen by the players independently of each other. Sufficient conditions for the game equilibria verifiable by solving three linear programming problems are proposed, and the equilibria particularly determine optimal production and selling strategies for the generator