A non-cooperative game approach on isolated water-energy microgrids

Abstract

The integration of renewable energies into water systems emerges as a crucial challenge and an opportunity within the water-energy nexus, particularly in isolated communities, emphasizing the importance of developing sustainable and self-sufficient isolated water-energy microgrids (IWEMGs). This study addresses a significant gap in existing research by proposing a comprehensive model that simultaneously considers operation and dispatch in IWEMGs. Our work introduces a framework based on game theory to model and optimize resource management in IWEMGs, where actors, including consumers, producers, or prosumers, engage in a non-cooperative game (Cournot competition), enabling an effective resource allocation mechanism for water and energy that considers strategic interactions among participants. The application of this model to a case study in a rural community, known as Ranchería, in La Guajira, Colombia, demonstrates the practicality and effectiveness of IWEMGs in meeting the water and energy demands of users. The model is implemented and solved using the GAMS software. Our quantitative results show optimal performance in resource management, highlighting the model’s ability to facilitate informed decision-making. Through a detailed analysis of water and energy transactions and the net benefits achieved, the study illustrates the potential of game theory to enhance the operational performance of IWEMGs. Furthermore, this research contributes to the broader discourse on sustainable resource management, offering insights that could guide the development of policies and strategies for implementing IWEMGs in similar contexts globally.