Distributed coordinative transaction of a community integrated energy system based on a tri-level game model

As the energy market shifts from vertically integrated structures to interactive competitive structures, the transaction mechanism for resident users faces significant challenges because of its large numbers and small size. This paper proposes a distributed coordinative transaction mechanism of a community integrated energy system utilizing a tri-level game model. The vertical trading aspect is formulated as a dual-Stackelberg game, wherein the load aggregators serve as an intermediary between the energy hubs and resident users. Horizontal bidding among the energy hubs is modeled as a non-cooperative game, wherein each stakeholder pursues the optimal benefit. The equilibrium of this tri-level game is proven to exist and is solved by means of a distributed algorithm. The tri-level model is initially transformed into a bi-level problem through the Karush–Kuhn–Tucker condition and convexification, and is then solved using the distributed iterative algorithm. Finally, the effectiveness of the proposed tri-level game model and distributed solution algorithm was verified by case study, which confirmed that all stakeholders could benefit from the proposed transaction mechanism.