Reducing Power Losses in Smart Grids with Cooperative Game Theory

In a theoretical framework of game theory, one can distinguish between the noncooperative and the cooperative game theory. While the theory of noncooperative games is about modeling competitive behavior, cooperative game theory is dedicated to the study of cooperation among a number of players. The cooperative game theory includes mostly two branches: the Nash negotiation and the coalitional game theory. In this chapter, we restrict our attention to the latter. In recent years, the concept of efficient management of electric power has become more complex as a result of the high integration of distributed energy resources in the scenarios to be considered, mainly distributed generation, energy storage distributed, and demand management. This situation has been accentuated with the appearance of new consumption elements, such as electric vehicles, which could cause a high impact on distribution gridworks if they are not managed properly. This chapter presents an innovative approach toward an efficient energy model through the application of the theory of cooperative games with transferable utility in which the management, capacity, and control of distributed energy resources are integrated to provide optimal energy solutions that allow achieving significant savings in associated costs. This chapter presents a general description of the potential of the application of the theory to address Smart Grid, providing a systematic treatment.