Techno-economical Study of Power System Market- A Game Theory Approach

The renewable energy penetration in power system has perpetrated new dimensions in the existent electricity market which warrants its restructuring. Continuous research is on regarding formulations of polices to meet the long-term techno-economical electricity management challenges in this heuristic and diversified scenario. The advancement and development in this new era revolve mainly around the operational complexity of Unit Commitment and the dispatch related economic issues. In this evolution of power systems is studied as a conventional Grid, a Micro Grid and a Renewable integrated Grid. Game theory, for the most prevalent Renewable integrated Grid, has been applied to demonstrate its techno-economic evaluating strategy. The major concern of the modern Smart Grid system is to achieve a "No-regret" solution under self-enforcement conditions. The game theory, considering a Micro Gird and a Conventional Grid as the two players, has been performed with the help of game theory matrix. The aim is to illustrate the optimal payoff according to their different actions of Cooperation and Noncooperation in the game.