Strategic decision-making for power network investments with distributed renewable generation

Merlinda Andoni, Valentin Robu, Wolf Gerrit Früh, David Flynn

Research output: Chapter in Book/Conference proceedings/Edited volumeConference contributionScientificpeer-review

2 Citations (Scopus)

Abstract

Deregulated power systems with high renewable penetration often involve complex decision-making by self-interested private investors. In this work, we study the setting of privately developed and shared network capacity, where the power grid infrastructure, renewable generation and storage units are built by profit-driven investors. Specifically, we consider a case where demand and generation sites are not co-located, and a private investor installs generation capacity and a power line between the two locations providing also access to rival competitors (local generators and storage investors) against a fee. We show such a setting leads to a bilevel Stackelberg-Cournot game between the line investor (leader) and local investors (followers) and develop a data-driven solution to derive the profit-maximising capacities installed by players at equilibrium, based on analysis of a large-scale empirical dataset from a grid upgrade project in the UK. Our method provides a realistic tool to analyse decision-making of private investors in such games and subsequently encourage further adoption of renewable generation.

Original languageEnglish
Title of host publicationProceedings of the 19th International Conference on Autonomous Agents and Multiagent Systems, AAMAS 2020
EditorsBo An, Amal El Fallah Seghrouchni, Gita Sukthankar
PublisherInternational Foundation for Autonomous Agents and Multiagent Systems (IFAAMAS)
Pages52-60
Number of pages9
ISBN (Electronic)9781450375184
Publication statusPublished - 2020
Externally publishedYes
Event19th International Conference on Autonomous Agents and Multiagent Systems, AAMAS 2020 - Virtual, Auckland, New Zealand
Duration: 19 May 2020 → …

Publication series

NameProceedings of the International Joint Conference on Autonomous Agents and Multiagent Systems, AAMAS
Volume2020-May
ISSN (Print)1548-8403
ISSN (Electronic)1558-2914

Conference

Conference19th International Conference on Autonomous Agents and Multiagent Systems, AAMAS 2020
CountryNew Zealand
CityVirtual, Auckland
Period19/05/20 → …

Keywords

  • Energy storage
  • Game theory
  • Network expansion
  • Renewable generation
  • Stackelberg-Cournot game

Fingerprint Dive into the research topics of 'Strategic decision-making for power network investments with distributed renewable generation'. Together they form a unique fingerprint.

Cite this