Stochastic game frameworks for efficient energy management in microgrid networks

Abstract

We consider the problem of energy management in microgrid networks. A microgrid is capable of generating power from a renewable resource and is responsible for handling the demands of its dedicated customers. Owing to the variable nature of renewable generation and the demands of the customers, it becomes imperative that each microgrid optimally manages its energy. This involves intelligently scheduling the demands at the customer side, selling (when there is a surplus) and buying (when there is a deficit) the power from its neighboring microgrids depending on its current and future needs. In this work, we formulate the problems of demand and battery scheduling, energy trading and dynamic pricing (where we allow the microgrids to decide the price of the transaction depending on their current configuration of demand and renewable energy) in the framework of stochastic games. Subsequently, we propose a novel approach that makes use of independent learners Deep Q-learning algorithm to solve this problem.