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Game-theory-based electricity market clearing mechanisms for an open and transactive distribution grid

This paper explores the game-theory-based market clearing mechanisms for an open and transactive distribution grid. Driven by the Smart Grid paradigm shift, hundreds of thousands of distributed electricity prosumers have the potential to participate into the residential electricity market by managing their own generators and loads. Therefore, there is an urgent need to establish an efficient and effective market framework for plug-and-play of a tremendous amount of highly distributed and scalable electricity prosumers. In this paper, the novel game-theory-based methodologies and algorithms are utilized to mimic the dynamic behaviors of these distributed electricity prosumers. The concept of Distribution Locational Marginal Price (DLMP) is also adopted to provide tempo-spatial price signals to all market participants. A suite of case studies are conducted to evaluate and validate the proposed electricity market clearing mechanisms.