Iterative Game Approach for Modeling the Behavior of Agents in a Competitive Flexibility Trading

The potential of end-users to modify their consumption pattern makes them an interesting resource for providing energy flexibility in energy communities. Thus, active end-users require sufficient incentives and automated trading and management schemes. In order to enable increased small-scale end-users participation for flexibility service provision, a new design for flexibility trading is required to model the behavior of different agents and their interactions in energy communities. The novelty of our work lies in proposing an iterative game-based approach in which all agents – consisting of the distribution system operator (DSO), aggregators, and customers– can determine their decision variables to optimize their own objective functions and interact with others to modify their decisions according to others’ decisions. In addition, three scenarios are considered to study the effects of agents’ freedom while setting their decision variables (by removing one of their constraints in their corresponding decision-making problem). Moreover, the impact of the presence of interruptible loads in comparison with shiftable loads is investigated in this paper. According to the simulation results, it is found that in the scenario where end-users have fewer constraints, in presence of interruptible loads, end-users gain greater income compared to the absence of interruptible loads