A Three-Level A Stackelberg Game with Virtual Power Plant Clusters Multi-Agent Trading Strategy

The increasing integration of renewable energy into power systems creates challenges for grid management and economic efficiency. Traditional models often fail to capture the complex interactions between different market participants. We propose a three-level operational model based on game theory to analyze power grid economic efficiency. Our model captures multi-level energy trading between Virtual Power Plant Cluster (VPPC), Virtual Power Plants (VPPs), and diverse energy users through hierarchical Stackelberg game theory. We analyze utility functions and strategies of all participants and prove Stackelberg equilibrium (SE) as a balanced solution. The VPPC maximizes profit at the first level by setting optimal internal prices that encourage VPPs to trade internally. At the second level, VPPs optimize trading strategies between the main grid and VPPC based on market conditions. At the third level, different user types (residential, commercial, and industrial) maximize utility according to their specific consumption patterns and price sensitivities. Simulation results validate our model's effectiveness. The hierarchical approach enhances economic benefits for all participants while promoting sustainable grid integration. This contributes significantly to establishing grid-friendly VPPC operations in modern power systems