(Evolutionary) Game Theory for understanding green energy support schemes: The Smart Grid Game



The smart grid (SG) is a visionary project for a scalable, sustainable electricity grid, with a bi-directional information and energy flow, real-time management and self-healing capacities.

Renewable energy sources (RES) have become a key component in the race for a cleaner electricity grid. Governments all around the world are implementing various support schemes (e.g., feed-in-tariffs, net-metering, green certificates, investment aids) to promote the generation and injection of green energy. However, transitioning from an electricity consumer towards a prosumer (producer + consumer) implies certain economical risks.



You will analyze and model the decision making of becoming a prosumer under various support schemes, as a game, borrowing concepts from game theory. We call this The Smart Grid Game. The outcome of your work is vital to understand the incentives of becoming a residential green energy producer and the impact different policies have on the short and long term. You will be able to provide answers to research questions, such as: “From which point onwards it is no longer profitable to become a prosumer?”

In addition to the above modeling (or as an alternative to it) you will study how evolutionary game theory can be applied to the above scenario to investigate prosumer density inside a neighbourhood at equilibrium, again under various support policies. You will investigate vital questions, such as: “Should everyone install solar panels? or “Is there an ‘optimal’ density of prosumers?”



Roxana Rădulescu

Mihail Mihaylov



De Boeck, Liesje, et al. "Comparison of support policies for residential photovoltaic systems in the major EU markets through investment profitability." Renewable Energy 87 (2016): 42-53.

Easley, D., & Kleinberg, J. (2010). Evolutionary game theory. From the Book, Networks, Crowds, and Markets: Reasoning about a Highly Connected World, 209-227. (http://ihome.ust.hk/~nying/files/math4321_14_spring/ref8.pdf)

Sigmund, K. (2010). The calculus of selfishness. Princeton University Press.  (http://press.princeton.edu/chapters/s9241.pdf)