| Summary: | A transition from generation on demand to consumption on demand is one of the solutions to overcome the many limitations associated with the higher penetration of renewable energy sources. Such a transition, however, requires a considerable amount of load flexibility in the demand side. Demand response (DR) programs can reveal and utilize this demand flexibility by enabling the participation of a large number of grid-interactive efficient buildings (GEB). Existing approaches on DR require significant modelling or training efforts, are computationally expensive, and do not guarantee the satisfaction of end users. To address these limitations, this paper proposes a scalable hierarchical model-free transactional control approach that incorporates elements of virtual battery, game theory, and model-free control (MFC) mechanisms. The proposed approach separates the control mechanism into upper and lower levels. The MFC modulates the flexible GEB in the lower level with guaranteed thermal comfort of end users, in response to the optimal pricing and power signals determined in the upper level using a Stackelberg game integrated with aggregate virtual battery constraints. Additionally, the usage of MFC necessitates less burdensome computational and communication requirements, thus, it is easily deployable even on small embedded devices. The effectiveness of this approach is demonstrated through a large-scale case study with 10,000 heterogenous GEB. The results show that the proposed approach can achieve peak load reduction and profit maximization for the distribution system operator, as well as cost reduction for end users while maintaining their comfort.
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