Receding Horizon Games with Coupling Constraints for Demand-Side Management

TL;DR

This paper introduces a receding horizon game approach for demand-side management that coordinates energy prosumers, improving grid stability and performance amidst renewable integration and peak loads.

Contribution

It develops a novel closed-loop game-theoretic control policy with proven stability and constraint satisfaction for demand-side management.

Findings

Outperforms open-loop methods in peak-shaving.

Enhances disturbance rejection capabilities.

Ensures stability and recursive constraint satisfaction.

Abstract

Distributed energy storage and flexible loads are essential tools for ensuring stable and robust operation of the power grid in spite of the challenges arising from the integration of volatile renewable energy generation and increasing peak loads due to widespread electrification. This paper proposes a demand-side management policy to coordinate self-interested energy prosumers based on receding horizon games, i.e., a closed-loop receding-horizon implementation of game-theoretic day-ahead planning. Practical stability and recursive constraint satisfaction of the proposed feedback control policy is proven under symmetric pricing assumptions using tools from game theory and economic model predictive control. Our numerical studies show that the proposed approach is superior to standard open-loop day-head implementations in terms of peak-shaving, disturbance rejection, and control performance.