A Distributed-Decentralized Tri-Layer Game-Based Transactive Energy Framework Including Adaptive Proximal ADMM and Scale- Independent DRO

Abstract

Transactive energy (TE) as a market-based mechanism provides a practical framework to fully manage and control local energy networks with a high penetration of distributed energy resources (DERs). However, the existing designed TE frameworks can rarely encourage prosumers to participate fairly owing to neglecting competition and cooperation. This paper proposes a tri-layer hybrid game-based TE framework, wherein the cooperation of prosumers to trade energy in a peer-to-peer (P2P) fashion is considered in the first layer using the Nash Bargaining Game (NBG) Theory. The competition among prosumers to trade with the most affordable aggregator is modeled at the second layer using the evolutionary game (EG). The third layer also models the competition among aggregators and the competition between aggregators and the cooperation of prosumers by developing a non-cooperative game. Besides, a scale-independent distributionally robust optimization (DRO) is developed based on the Wasserstein ambiguity set to allow prosumers to manage their uncertainty using all potential historical data while ensuring tractability. Finally, a new adaptive proximal alternative direction method of multipliers (ADMM) is introduced to develop a distributed-decentralized decision-making scheme for satisfying network constraints and energy trading in a P2P manner to accelerate the solution procedure and preserve privacy. The tests and implementations demonstrate that the proposed tri-layer TE framework lowered the overall costs for prosumers by 11 % and 2.85 % compared to the total costs in non-cooperative TE and cooperative TE, respectively.

Keywords

• Adaptive proximal ADMM
• cooperative game
• evolutionary game (EG)
• Nash bargaining game (NBG)
• non-cooperative game
• scale-independent DRO