Stochastic adaptive-service level agreement-based energy management model for smart grid and prosumers

The growing issue of demand-supply management between the prosumers and the local energy market requires an efficient and reliable energy management model. The micro-layers, such as prosumers, energy districts, and macro players, namely retail dealers and wholesale dealers play a pivotal role in achieving mutual benefits. The stochastic nature of renewable energy generation in energy districts requires an effective model that can contemplate all stochastic complexities. Therefore, this paper proposes a mutual trade model between energy districts and smart grid to authorize the prosumers for mutual energy transactions under the stochastic adaptive-service level agreement. Moreover, multiple smart contacts are developed between the stakeholders to design adaptability and stochastic behavior of wind speed and solar irradiance. The real-time adaptations of the stochastic adaptive-service level agreement are based on technical beneficial feasibility and achieved through stochastic and adaptive functions. The optimized solution based on a genetic algorithm is proposed for the energy cost and energy surplus of prosumers and output parameters of the mutual trade model (grid revenue). In the context of mutual benefits associated with balanced demand and supply, the economic load dispatch and simplex method maximization are used for optimized demand-supply energy management. Moreover, the effectiveness of the proposed adaptive and stochastic mutual trade model is validated through simulation and statistical analysis. © 2022 Ahmed et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.