Two-Level Decision Making Model for A Distribution Company in Day-Ahead Market
Published:
Utilities has some demand response programs and some renewable energy generation. They also buy a significant portion of their demand from forward markets. In this paper, we model the energy acquisition model of an utility as a matrix game, for which in order to decrease the size of this matrix game we introduce a lemma detailing how the optimal strategy for any sub-game works. In the end, we use reinforcement learning to find the Nash equlibrium in the game.
The proposed two-level decision making model within the market is shown in the following figure.
To see the pdf of the paper, see link.