Bi-Level Non-Cooperative Stackelberg Game-Based Energy Management of Peer-to-Peer Energy Trading Market

The increase in global electricity demand and reliance on fossil fuels has resulted in higher environmental pollution and CO2 emissions. To address these issues, renewable energy sources are being used as an alternative. This paper introduces an intelligent hybrid microgrid energy management system operating within a bi-level non-cooperative Stackelberg equilibrium game. The goal is to maximize profits for both the microgrid manager and households. The microgrid manager operates in electricity, hydrogen, and heat markets, using an energy storage system (ESS), electrolyzer, hydrogen storage, and a fuel cell combined heat and power system. Key tasks include supplying power during peak demand, purchasing excess energy from consumers, and implementing a price-based load response program in a peer-to-peer market. The smart microgrid comprises 20 houses, some equipped with solar panels and ESS. The model is analyzed using GAMS and EMP. Results show that while the load response program can increase profits for the microgrid manager, it also raises network load during peak times, negatively impacting household self-consumption.