Securely and efficiently procuring energy balancing services in distribution networks remains challenging, especially within a privacy-preserving environment. In this project, we propose a network-constrained demand response game, i.e., a Generalized Nash Game (GNG), to incentivize energy consumers to offer balancing services. Specifically, we adopt a supply function-based bidding method for our demand response problem, where a requisite load adjustment must be met. To ensure the secure operation of distribution networks, we incorporate physical network constraints, including line capacity and bus voltage limits, into the game formulation. In addition, we analytically evaluate the efficiency loss of this game. Previous approaches to steer energy consumers toward the Generalized Nash Equilibrium (GNE) of the game often necessitated sharing some private information, which might not be practically feasible or desired. To overcome this limitation, we propose a decentralized market clearing algorithm with analytical convergence guarantees, which only requires the participants to share limited, non-sensitive information with others.

This work has been presented in Benelux Meeting on Systems and Control 2023 and IFAC World Congress 2023.