Social Profit Optimization With Demand Response Management in Electricity Market: A Multi-Timescale Leader-Following Approach

In the electricity market, it is quite common that market participants make “selfish” strategies to harvest maximum profits for themselves, which may cause social benefit loss and impair sustainability of in long term. Regarding this issue, we will study how profit can be improved through strategic demand response management. Specifically, explore two interaction mechanisms market: Nash game Stackelberg game. At user side, each makes respective energy-purchasing strategy optimize its own profit. utility company (UC) consider multiple self-centric UCs play games. A social-centric governmental UC established as leader competition. Then, a multi-timescale leader-following problem formulated under coordination an independent system operator. By our proposed function amelioration strategy, efficiency maximized. addition, by considering some additional constraints projection-based algorithms are proposed. The feasibility verified with IEEE 9-bus model simulation.