COALITIONAL GAME THEORETIC OPTIMIZATION OF ELECTRICITY COST FOR COMMUNITIES OF SMART HOUSEHOLDS

In this paper we propose a novel coalitional game theory based optimization method for minimizing the cost of the electricity consumed from the power grid by a community of smart households. A smart household may own both a renewable energy source and an energy storage system (ESS), or only an ESS. We propose an optimization model in which all the members of the community jointly share their renewable resources and storage systems. We show that the proposed coalitional optimization method reduces the consumption costs both at community level and at the individual level when compared to the case in which the households would individually optimize their costs. The monetary revenues gained by the coalition are divided among the members of the coalition according to the Shapley value. Simulation examples show that the proposed coalitional optimization method may reduce the electricity costs for the community by roughly 18%.