A Game-Theoretic Market Mechanism for Procuring Flexibility Services in Distribution Networks under Limited Information Sharing (I)

We propose a game-theoretic market mechanism for energy balancing in a real-time market and formulate the competition among energy consumers as a Generalized Nash Game (GNG). In this framework, the supply function based bidding method is adopted to mitigate the market power of active energy consumers. Moreover, the physical constraints are incorporated to guarantee the secure operation of the distribution network. To steer consumers to the Generalized Nash Equilibrium (GNE) of this game, existing studies usually require participants to share full or partial private information which may not be appropriate for the practical implementation. In this regard, we design a preconditioned forward-backward based algorithm with provable convergence, by which a market participant only needs to share limited non-private information with others.