A multi-layer-multi-player game model in electricity market

Here, a novel tri-level energy market model aimed at addressing the challenges posed by demand side management (DSM) in the electricity distribution company (EDC) is introduced. DSM has emerged as a new strategy employed by EDCs to manage and control electricity demand by encouraging end-users to modify their electricity consumption patterns. This is achieved through the participation of demand response (DR) aggregators, which play a crucial role in assisting end-users with strategies and technologies to reduce their electricity consumption during peak hours. The proposed tri-level energy market model consists of four distinct players: EDC, microgrids, aggregators, customers. The interactions between these four actors are modelled within a tri-level game framework, where the EDC and aggregators act as leaders, and the micro-grids and customers are followers. This multi-level and multi-player game structure allows for a more realistic representation of the complexities involved in DSM programs within the energy market. To demonstrate the effectiveness of the proposed model, a real case study is utilized, showing that the new model better resembles real-life market conditions. The results illustrate how the tri-level energy market model can significantly reduce demand fluctuations during peak hours, leading to improved efficiency and effectiveness within DSM programs.