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Modelling of market equilibrium on the basis of Smart Grid market system decomposition


The structural decomposition of the Smart Grid market equilibrium model is suggested for the ‘Top-Level Market’ and ‘Smart City’ local systems. Modelling of the ‘Top-Level Market’ system is implemented at the central level and is provided by the methods of solving nonlinear complementarity problems of large dimension with the reproduction of the competitive Cournot game. Modelling of ‘Smart City’ systems is fulfilled at the local levels by methods of solving mixed integer modelling problems with the reproduction of competitive Bertrand’s games. A mathematical model of the ‘Smart City’ system is proposed, which shows the peculiarities of balancing the supply and demand in the system in the presence of limited capacity of electricity storage. The model reflects the interaction of the ‘Smart City’ system with the ‘Top-Level Market’ system. The computational experiments show the adequacy of the results of modelling of ‘Smart City’ systems.


  • Sergii Saukh (Pukhov Institute for Modelling in Energy Engineering)
  • Andriy Borysenko (Igor Sikorsky Kyiv Polytechnic Institute)

5 thoughts on “Paper-14

  1. Thanks for the question.
    Yes, it is.
    Today ‘Top-Level market’ and ‘Smart City’ models are working sub-models and both can be applied practically. The proposed decomposition method, which provides iterative matching of unknowns defined by these sub-models, can be implemented on a distributed modeling environment of the client-server architecture, similar to that in recent years used by the PJM system operator.

  2. How does your model take into account the cost of electric public transport? Does the battery mean energy storage devices or electric cars as members of a smart grid?

  3. Thanks for the questions.
    Q1. In the sub-models “Top-level market” and “Smart city”, the characteristics of consumer groups are presented in integral form and can be detailed, including up to the level of characteristics of electricity consumers related to public electric transport.
    Q2. The batteries in the “Smart city” submodels are represented by generalized parameters that are uniquely determined by the parameters of individual batteries, and the parameters of randomly connected electric vehicle batteries are taken into account by their statistical characteristics. The construction of such characteristics is not considered in the work.

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