Cournot game based multi-supplier local energy trading

With the advanced ICT (information and communication technology) support, the local energy trading rapidly develops and plays an important role in energy supply in recent years. Because the demand and supply directly occurs at local level, the transmission cost saves a lot and the distributed renewables energy resources are capable to be used in energy supply. This paper presents a multi-supplier trading system for the local power market, which is formulated as a non-cooperative Cournot game. In this model, four types of providers: thermal power plant, wind power plant, PV power generation and customer-operated storage electricity supplier are considered separately. Their cost functions have been extensively formulated. A unique Nash equilibrium (NE) exists and the optimum strategies can be derived as demonstrated in a typical local market. The proposed approach can effectively model local energy trading of different types of energy providers.