Coalition Formation Algorithm of Prosumers in a Smart Grid Environment

Abstract: In a smart grid environment, we study coalition formation of prosumers that aim at entering the energy market. It is paramount for the grid operation that the energy producers are able to sustain the grid demand in terms of stability and minimum production requirement. We design an algorithm that seeks to form coalitions that will meet both of these requirements: a minimum energy level for the coalitions and a steady production level which leads to finding uncorrelated sources of energy to form a coalition. We propose an algorithm that uses graph tools such as correlation graphs or clique percolation to form coalitions that meet such complex constraints. We validate the algorithm against a random procedure and show that, it not only performs better in term of social welfare for the power grid, but also that it is more robust against unforeseen production variations due to changing weather conditions for instance.