Value of Thermostatic Loads in Energy/Frequency Response Markets: a Mean Field Game Approach

This paper studies the distributed coordination of large populations of thermostatically controlled loads (TCLs). It is assumed that each TCL operates in an integrated energy/frequency response market and reacts to broadcast prices in order to minimize its energy cost and, at the same time, maximize its revenues from frequency response. A mean field game is used to model the competing interactions between the TCLs, quantity their impact on the system unit commitment and characterize the desired market equilibrium solution. This approach is then compared with a no-flexibility case in a 2030 scenario of the GB system, assessing the potential benefits of different types of flexible price-responsive TCLs in terms of cost reduction for the individual customers and for the overall system.