Game-theoretic approach of two-step DR market participation through ESS with prospect theory-based decision making under uncertainty

Abstract

At the point of global energy transition, Demand Response (DR) and Energy Storage (ESS) are regarded as advantageous flexibility resources to cope with the fluctuation of the Renewable Energy (RE) rapidly penetrated. Furthermore, the energy transition entails multiple uncertainties in decision-making for consumers. This study is mainly involved in capturing enhanced flexibility resources by coming up with DR resources with the ESS. The front part of this paper suggests a DR participation strategy through ESS under uncertain environment. The game-theoretical model of the non-cooperative energy trading with their Energy Storage (ESS) between the DR participants is constructed in the latter part. In addition, game is constructed single game and repeated game to observe changes in deviate motivation from repeated DR participation. Furthermore, prospect theory-based decision making will be proceed to reflect the realistic prosumer’s behavior under the uncertainties. Case study using analytical data from the campus of Gwangju Institute of Science and Technology (GIST) in Korea proves that the proposed model plays important role to mitigate the DR participation uncertainty.