The coordination of centralised and distributed generation

Consumers satisfy their electricity demand by self-production (solar panels) and centralized production (energy companies). We consider the point of view of a consumer, an energy company, a social planner: we characterize the... [ view full abstract ]

Consumers satisfy their electricity demand by self-production (solar panels) and centralized production (energy companies). We consider the point of view of a consumer, an energy company, a social planner: we characterize the production strategies which minimize the costs and look for an equilibrium price, in the sense of Pareto and Stackelberg. Mathematically, we deal with non-standard McKean-Vlasov control problem with stochastic coefficients. Our results do not depend on the model chosen for the market price of electricity.