Hybrid Game Theoretic Approach for Flexibility Service Provision in Community Energy Systems with Battery Energy Storage System

In the flexibility market, users’ bidding behaviors are influenced by their flexibility capacities, and the benefits they obtain vary significantly depending on whether they adopt cooperative or non-cooperative strategies. Consequently, relying on a single game-theoretic model to optimize the bidding decisions of all users fails to ensure maximum economic benefits for individual users or market stability. To address this issue, this paper proposes a hybrid game-theoretic framework that accommodates different users’ strategic choices. Firstly, the proposed hybrid game-theoretic framework models strategic interactions among participants, enabling both collaborative and non-collaborative decision-making. The approach allows each agent to choose a game mode to enhance its economic returns based on its level of flexibility capacities. Then, the framework ensures equilibrium convergence efficiently through a step-size control algorithm. Finally, simulation results demonstrate that when battery stoage systems act as collaborative players, they increases revenue for participating agents, and enhance flexibility of the community energy system.