Modelling utility-aggregator-customer interactions in interruptible load programmes using non-cooperative game theory

Aggregator-activated demand response (DR) is widely recognised as a viable means for increasing the flexibility of renewable and sustainable energy systems (RSESs) necessary to accommodate high penetration variable renewables. To this end, by acting DR aggregators offering trading capabilities smaller customers, retailers unlock additional sources demand-side ensure cost-optimal operation RSESs. Accordingly, growing body literature has highlighted ways in which non-cooperative game theory could be used reduce gaps between modelled real-world results aggregator-mediated schemes. This paper aims contribute trends giving realistic grounding research on distributed DR-integrated scheduling using insights from determine: (1) optimal trade-off importing electricity utilising capacity grid-tied RSESs, (2) impact price elasticity supply different customer classes – especially, new demand, such e-mobility system-level dispatch resources, (3) financial implications harnessing potential large number end-consumers across sectors. principal goal develop an operational planning optimisation model that can directly applied aggregator-mediated, market-based provisioning domains. presents first elasticity-aware, game-theoretic that: yields best compromise solution imported power dispatched resources utility’s perspective, characterises utility-aggregator-customer interactions during trade process with several categories involved, disaggregates total sectoral load system individual end-consumers, pre-feasibility business case assessments. The application conceptual micro-grid town Ohakune, New Zealand, demonstrates its effectiveness reducing daily cost (over critical peak hours) ~66% ~47% representative summer winter day, respectively. Importantly, provides statistically significant evidence supporting activating small- medium-scale through specifically defined third-party approach aware strategic among instrumentally rational economic agents involved delivery plays role transition 100%-renewable generation within smart grid paradigm.