Thomas Buchholtzer and Michel de Lara, researchers from the Centre for Applied Mathematics at École Polytechnique in France, have developed a new framework to model demand response in energy systems. Their work, published in the journal “Automatica,” addresses the growing complexity of energy systems as they become more decentralized and reliant on variable renewable energy sources.
The researchers introduce a versatile and modular framework called “Games in Product Form” or W-games, which is designed to handle leader-follower problems in energy systems. In this context, the leader is typically the energy supplier, who sets prices or other incentives, while the followers are consumers who adjust their energy consumption in response. The framework is built upon a model that defines the rules of the game, known as the W-model, where agents are decision-makers, and Nature encapsulates everything beyond their control, such as private knowledge and exogenous factors.
One of the key features of the W-games framework is its ability to represent the information available to agents when making decisions. This is achieved by using a product set equipped with a product σ-algebra, following the Witsenhausen intrinsic model. The researchers also introduce an additional layer of information, the characteristics of the preferences linked to players, which affects the possible definitions of an equilibrium. They make this explicit in Nash and Stackelberg equilibria, two common types of equilibria used in game theory.
The practical applications of this research for the energy sector are significant. The W-games framework can be used to reformulate and analyze demand response programs, highlighting informational issues that may have been overlooked in previous studies. For instance, the researchers provide an application based on the Thailand demand response program to demonstrate the effectiveness of their framework. By improving the modeling of demand response, energy suppliers can better balance supply and demand, leading to more efficient and reliable energy systems.
In summary, Buchholtzer and de Lara’s research provides a powerful tool for modeling demand response in energy systems. By addressing informational issues and incorporating the preferences of players, the W-games framework can help energy suppliers and consumers make more informed decisions, ultimately leading to a more sustainable and efficient energy future.
This article is based on research available at arXiv.