A Two-Stage Game Model for Combined Heat and Power Trading Market


The proliferation of technologies such as combined heat and power systems and smart meters has accelerated the multienergy trading. A two-stage game model is built in this paper to analyze the optimal strategy of each player and their interactions. Specifically, in consumer game model, we present an autonomous and distributed micro energy management system among users in which power and heat are traded at the same time. In supplier game model, integrated energy suppliers receive energy demand information and share the market according to the game result. In addition, we present a detailed proof of the existence and uniqueness of the Nash equilibrium, which lays the foundation for researchers to build an effective model using game theory. Further, a distributed algorithm specifically designed for this model is proposed. The players can retain a certain level of anonymity without revealing the details of their energy consumption or generation schedules to other players. Lastly, simulation results confirm the feasibility of two-stage game model and the effectiveness of the proposed distributed algorithm.


Electrical and Computer Engineering


This work was supported in part by the National Science Foundation of China under Grant 51477029 and in part by the State Grid Zhejiang Electric Power Company.

Keywords and Phrases

Commerce; Demand side management; Domestic appliances; Energy management; Energy management systems; Energy utilization; Industry; Parallel algorithms; Cogeneration; Combined heat and power; Combined heat and power system; Energy suppliers; Existence and uniqueness; Games; Generation schedules; Optimal strategies; Game theory; Distributed algorithm; Micro energy management system

International Standard Serial Number (ISSN)

0885-8950; 1558-0679

Document Type

Article - Journal

Document Version


File Type





© 2019 Institute of Electrical and Electronics Engineers (IEEE), All rights reserved.

Publication Date

01 Jan 2019