Competition and Cooperation of Distributed Generation and Power System

—Case Study on Cogeneration System—

Abstract

Advances in distributed generation technologies together with the deregulation of an electric power industry can lead to a massive introduction of distributed generation. Since most of distributed generation will be interconnected to a power system, coordination and competition between distributed generators and large-scale power sources would be a vital issue in realizing a more desirable energy system in the future. This paper analyzes competitions between electric utilities and cogenerators from the viewpoints of economic and energy efficiency based on the simulation results on an energy system including a cogeneration system. First, we examine best response correspondence of an electric utility and a cogenerator with a noncooperative game approach: we obtain a Nash equilibrium point. Secondly, we examine the optimum strategy that attains the highest social surplus and the highest energy efficiency through global optimization.