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Using Stackelberg Games to Model Electric Power Grid Investments in Renewable Energy Settings

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Autonomous Agents and Multiagent Systems (AAMAS 2016)

Part of the book series: Lecture Notes in Computer Science ((LNAI,volume 10002))

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Abstract

Often renewable generators cluster in remote regions (such as windy islands) located away from demand centres. Suitability of these locations in terms of renewable resources, is often coupled with insufficient grid capacity, which leads to the application of generation curtailment, when power generated exceeds local aggregate demand. This work studies the effect of curtailments schemes on the strategic interaction of different investors. Our work uses a game-theoretic approach to study the profitability and decision making on future renewable investment, for a variety of different schemes. Next, we study the effect of curtailment and line access rules in power grid expansion. We model the interplay between a private line investor and local generators as a Stackelberg game and determine the generation capacity and profits at equilibrium. Finally, we examine a UK-based network upgrade case-study and show how results can be utilised to set a grid access payment mechanism, ensuring both the implementation of transmission and local generation investments.

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Notes

  1. 1.

    LIFO is used in: https://www.ssepd.co.uk/OrkneySmartGrid/ and www.ninessmartgrid.co.uk/our-project/ Pro Rata is used in: http://innovation.ukpowernetworks.co.uk/innovation/en/Projects/tier-2-projects/Flexible-Plug-and-Play-(FPP)/.

  2. 2.

    In Scotland, Community Energy Scotland (CES) is an umbrella organisation representing the interests of such groups.

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Acknowledgments

The authors would like to thank Community Energy Scotland and SSE for all the information provided, the Scottish government for their financial support through a Local Energy Scotland Challenge grant, and the participants of the Ofgem consultation workshop on new business models for power systems for many inspiring discussions.

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Authors and Affiliations

  1. Institute of Sensors, Signals and Systems, Heriot-Watt University, Edinburgh, UK

    Merlinda Andoni & Valentin Robu

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  1. Merlinda Andoni
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  2. Valentin Robu
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Correspondence to Merlinda Andoni .

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Editors and Affiliations

  1. Campus de la UAB, IIIA-CSIC , Bellaterra, Spain

    Nardine Osman

  2. Campus de la UAB, IIIA-CSIC , Bellaterra, Spain

    Carles Sierra

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Andoni, M., Robu, V. (2016). Using Stackelberg Games to Model Electric Power Grid Investments in Renewable Energy Settings. In: Osman, N., Sierra, C. (eds) Autonomous Agents and Multiagent Systems. AAMAS 2016. Lecture Notes in Computer Science(), vol 10002. Springer, Cham. https://doi.org/10.1007/978-3-319-46882-2_8

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  • DOI: https://doi.org/10.1007/978-3-319-46882-2_8

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  • Online ISBN: 978-3-319-46882-2

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