Privacy-preserving incentive mechanism for integrated demand response: A homomorphic encryption-based approach
Demand response is crucial for stabilizing smart grids by promoting flexible energy consumption. However, current demand response models largely rely on single- or bi-level frameworks, which lack the structure to effectively propagate incentives from the grid to integrated energy system service prov...
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| Main Authors: | , , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2025-03-01
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| Series: | International Journal of Electrical Power & Energy Systems |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S0142061524006306 |
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| Summary: | Demand response is crucial for stabilizing smart grids by promoting flexible energy consumption. However, current demand response models largely rely on single- or bi-level frameworks, which lack the structure to effectively propagate incentives from the grid to integrated energy system service providers and, ultimately, to multi-energy users. Additionally, privacy concerns in collecting and transmitting user energy preferences can reduce user participation in demand response. This study addresses these challenges by proposing a three-level demand response model for integrated energy systems, structured to align grid and integrated energy system objectives through a hierarchical incentive system. Using a Stackelberg game framework, the model coordinates interactions among the grid, integrated energy system service providers, and multi-energy users, ensuring efficient incentive distribution across all levels. To further protect privacy and encourage participation, a fully distributed algorithm incorporating homomorphic encryption is employed. Simulation results indicate that the proposed three-level mechanism enhances demand response performance by aligning user actions with grid objectives, outperforming traditional bi-level models. |
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| ISSN: | 0142-0615 |