Abstract
This study utilizes hot dry rock (HDR) geothermal energy, which is not affected by climate, to address the capacity allocation of photovoltaic (PV)-storage hybrid power systems (HPSs) in frigid plateau regions. The study replaces the conventional electrochemical energy storage system with a stable HDR plant assisted by a flexible thermal storage (TS) plant. An HPS consisting of an HDR plant, a TS plant, and a PV plant is proposed. Game approaches are introduced to establish the game pattern model of the proposed HPS as the players. The annualized income of each player is used as the payoff function. Furthermore, non-cooperative game and cooperative game approaches for capacity allocation are proposed according to the interests of each player in the proposed HPS. Finally, the proposed model and approaches are validated by performing calculations for an HPS in the Gonghe Basin, Qinghai, China as a case study. The results show that in the proposed non-cooperative game approach, the players focus only on the individual payoff and neglect the overall system optimality. The proposed cooperative game approach for capacity allocation improves the flexibility of the HPS as well as the payoff of each game player. Thereby, the HPS can better satisfy the power fluctuation rate requirements of the grid and increase the equivalent firm capacity (EFC) of PV plants, which in turn indirectly guarantees the reliability of grid operation.
WITH the concept of clean energy utilization gaining acceptance worldwide, the clean energy industry represented by photovoltaic (PV) power systems has developed rapidly [
The reliable grid connection of PV plants has gained the attention of scholars worldwide. There have been a few studies on the optimal access capacity of renewable power sources from the perspective of passive grid consumption [
There have also been studies on the critical role of PV-storage hybrid power systems (HPSs) in enhancing the reliable connection of PV plants from the perspective of the active configuration of energy storage systems [
However, the performance of the electrochemical energy storage system (EESS) such as cycle life and system self-consumption of electricity is substantially affected by environmental factors, which hinders its large-scale application in frigid plateau regions. Owing to climatic characteristics of severe cold and significant temperature differences, the present EESSs cannot effectively satisfy the demand for further development of the PV power industry in these regions. As a result, the power systems with high proportion of renewable power plants in plateau regions are deprived of reliable power supply [
Compared with battery systems, high-quality hot dry rock (HDR) geothermal energy resources [
The above literature shows that the capacity allocation problem is a hot topic in the research of HPSs, which is an optimization problem to obtain the optimal value of capacity allocation of HPSs considering the grid parameters and the characteristics of each plant, so as to achieve the best matching between the plants and resources. The existing research on the capacity allocation of PV-storage HPSs mainly adopts the multi-objective optimization method to solve the capacity allocation model. However, this method does not adequately explain the interaction mechanism among multiple energy subjects and cannot reveal the inherent physical significance of the capacity allocation results. Therefore, a few scholars extensively explored the capacity allocation of HPSs from game theory among multiple energy subjects [
In conclusion, the existing research on the capacity allocation of HPSs is based mainly on HPSs comprising PV and EESS, and has not been carried out on the capacity allocation of HPSs containing HDR plants and PV plants. HDR is different from other forms of energy storage due to its stable and continuous physical characteristics. Game theory approaches can fully reflect the physical characteristics of each player in the HPS, effectively reveal the mechanism of interaction, and clarify the physical and practical significance of the capacity allocation. This paper intends to adopt the game theory approaches to analyze the capacity allocation of the HPS with HDR geothermal energy, thermal storage (TS), and PV, and explore the competitive and cooperative relationship between the stable geothermal from the HDR plant and the fluctuating power from the PV plant.
In our previous research [
The HPS proposed in this paper consists of an HDR plant, a TS plant, a PV plant, and a substation [

Fig. 1 Architecture of proposed HPS.
The HDR plant has a very high annual utilization and can guarantee continuous and steady output power, because it is unaffected by climate conditions. However, the flexibility of conventional HDR plants is insufficient to fully utilize the large thermal reservoirs to provide reserves for PV plants due to the long dynamic response time of GMC [
Owing to the continuous characteristic of the GMC, the ORC generator of a conventional HDR plant must maintain continuous power output to prevent residual heat loss. By contrast, under the architecture shown in
(1) |
(2) |
(3) |
(4) |
where denotes the current moment; is the output power of the conventional HDR plant; is the mass flow rate of brine; is the specific heat capacity of brine; is the efficiency of the ORC generator; is the outlet temperature of HDR production wells; is the reinjection temperature; and are the mass flow rates of brine used for power generation and thermal energy storage, respectively; is the geothermal input to the exchanger; is the residual heat temperature of the brine after heat exchange; and is the output power of the flexible HDR plant.
Compared with conventional multi-objective optimization methods, game theory can further reveal the relationships between allocation outcomes through the studies of competition and cooperation among rational decision-makers [
The strategies of players are their installed capacity values, which are denoted as , , and , respectively. , , and represent the strategy sets corresponding to each player. and () are the upper and lower limits of installed capacity, respectively. Subject to environmental, technological, and policy factors, the strategy spaces of the players are denoted as: , , .
The objective of each player is to gain the payoff by selling electricity to the power grid: the larger the installed capacity, the higher the payoff from generation. However, the cost incurred by the game players is also proportional to the installed capacity. Thus, the payoff function of each player in the game pattern can be expressed as:
(5) |
where is the income of the players from electricity sales; and is the cost incurred by the players.
To focus on the physical characteristics, the labor maintenance cost is excluded from calculating the operation cost.
Owing to different cycle lifes, to unify the basis of the study, the annualized incomes and annualized costs constitute the payoff function of each player. Herein, the annualized costs are composed of the annualized investment cost and average annual operation cost . That is, in (5) can be expressed as:
(6) |
Since each player has different operation characteristics, its annualized income and average annual operation cost vary accordingly. Therefore, the payoff of each player is detailed separately as follows.
The output models of the HDR plant are given by (1) and (4). According to the two models of the HDR plant, the annualized income of the HDR plant when participating in an NCG can be expressed as:
(7) |
where is the time-of-use (TOU) electricity price; and is the set of annual generation hours.
When the HDR plant forms a coalition in CG, the annualized income of the HDR plant can be expressed as:
(8) |
The annualized investment cost of an HDR plant mainly consists of the investment cost of the GMC and the cost of the power generation system. The former is determined by the HDR resource and the level of underground engineering technology. It is a fixed cost in this paper. The latter can be determined by the capacity of the ORC generator. Thus, the annualized investment cost of an HDR plant can be expressed as:
(9) |
where is the annualized cost factor per unit capacity of the ORC generator; and is the fixed cost of GMC. The in the NCG is the maximum of , while it is the maximum of in the CG.
The main operation cost of an HDR plant is the residual heat loss owing to flexible operation. Thus, the average annual operation cost of an HDR plant can be expressed as:
(10) |
where is the geothermal price coefficient. The curtailed heat power is modeled as:
(11) |
From (7)-(10), the payoff functions of the HDR plant in the NCG and CG are expressed as:
(12) |
(13) |
TS plant achieves arbitrage by converting electrical or geothermal energy into thermal energy during low-electricity- price periods and converting the stored thermal energy into electrical energy during high-electricity-price periods. The annualized income of the TS plant can be expressed as:
(14) |
where is the electrical power purchased from the power grid. The annualized investment cost of the TS plant is mainly composed of the cost of the generation system and that of the TEST. These can be calculated from the capacity of the ORC generator and the mass of the required HTO, respectively, i.e.,
(15) |
where is the annualized cost factor of the TEST; is the total mass of the HTO required by the TEST; and is the maximum of .
The cost during the TS plant operation is reflected mainly in the heat loss of the TEST and the cost of replenishing the HTO. Herein, the heat loss is negligible owing to the improved insulation technology. The annual average HTO replenishment is obtained according to the practical engineering experience. Therefore, the average annual operation cost of the TS plant can be expressed as:
(16) |
where is the annual HTO replenishment factor; and is the HTO price.
The rectification of (14)-(16) yields the payoff function for the TS plant as:
(17) |
PV plant profits by selling electricity to the power grid. Due to solar irradiance uncertainty, the power fluctuation of PV plants causes curtailment losses and load-shedding penalties during operation. The annualized income, annualized investment cost, and average annual operation cost of PV plants are calculated as:
(18) |
(19) |
(20) |
where is the annualized investment cost factor of the PV plant; is the power under curtailment; is the power under load shedding; and is the penalty coefficient.
The rectification of (18)-(20) yields the payoff function for the PV plant as:
(21) |
The three players independent of each other in the proposed HPS pursue their individual interests and naturally constitute an NCG with the mutual competition. Besides, the three players are willing to cooperate due to the complementarity between the fluctuating solar energy and the stable geothermal energy. The NCG and CG approaches for capacity allocation are presented next.
In the NCG, the decision of each player focuses only on the maximization of the individual payoff while neglecting the overall optimality of the HPS. The NCG pattern that constitutes capacity allocation is as follows.
1) Player: H, T, and P.
2) Strategy set: , , and .
3) Payoff: , , and .
The equilibrium solution of the NCG approach for capacity allocation of the HPS is as follows:
(22) |
where () is the optimal installed capacity of plant .
TS plants are also required to satisfy operational constraints while operating non-cooperatively:
(23) |
(24) |
(25) |
(26) |
(27) |
(28) |
where is the mass flow rate of the HTO in exothermic power generation; is the specific heat capacity of the HTO; and are the temperatures of HTO used for power generation and after power generation, respectively; is the amount of heat storage; is the thermal power input to the TS plant for storage, which consists of electric heating power and geothermal power ; is the insulation factor of tanks; is the exothermic exchanger efficiency; is the electric heater efficiency; is the efficiency of the exchanger; and is the time interval.
The TEST is the critical equipment for realizing energy storage in the TS plant. The masses of HTO in the high-temperature tank and low-temperature tank should be maintained in dynamic balance during operation. Meanwhile, the total mass of HTO should be maintained constant. The mass balance constraints of the TEST are given as:
(29) |
(30) |
(31) |
where and are the masses of the HTO in the high-temperature and low-temperature tanks, respectively; and is the mass flow rate of the HTO during TS.
The PV plant model can be established by considering the quantity of solar irradiance and capacity of the plant [
(32) |
where is the solar irradiance type provided by the nature; is the type set; and are the power under curtailment and load shedding of solar irradiance type s, respectively; and is the probability of occurrence of each type.
Based on this, the output power, curtailment loss, and load shedding penalty constraints of the PV plant can be obtained as:
(33) |
(34) |
(35) |
where is the power generation coefficient of the PV plant [
In conclusion, the constraints of NCG approach for capacity allocation (22) include (1), (23)-(31), and (33)-(35).
Unlike the NCG, the HDR plant seeks to enhance geothermal energy value through the cooperation in an HPS. The TS plant seeks to achieve profitability through cooperation, and the PV plant seeks to satisfy the power fluctuation requirement of the power grid through cooperation. Therefore, all the players are willing to form a coalition, thereby constituting a CG pattern. The three players can form four coalitions: {{H, T}, {P}}, {{H, P}, {T}}, {{T, P}, {H}}, and {H, T, P}. The CG pattern for capacity allocation of each coalition is analyzed further here.
1) Capacity Allocation for {{H, T}, P}
In the HDR-TS coalition, the HDR plant and TS plant maintain the minimum output, and the geothermal energy is stored in the TESTs during low electricity price hours. During high electricity price hours, the TS plant utilizes heat to generate electricity. This increases the value of geothermal energy generation. Thus, the CG pattern for the capacity allocation of the HDR-TS coalition is described as follows.
1) Player: {H, T} and {P}.
2) Strategy set: and , where represents the Cartesian product.
3) Payoff: coalition payoff and .
Since the TS plant can directly store and utilize the geothermal energy as denoting in operational constraint (27), the outlet thermal power of the TS exchanger can be described as:
(36) |
The equilibrium solution of the capacity allocation for the HDR-TS coalition is expressed as:
(37) |
The constraints of include (2)-(4), (23)-(31), and (36). The constraints of include (33)-(35).
2) Capacity Allocation for {{H, P}, T}
In the HDR-PV coalition, the HDR plant can provide reserves for the PV plant, which reduces the curtailment losses and load shedding penalties of the PV plant and increases the total coalition payoff. Therefore, the CG pattern for the capacity allocation of the HDR-PV coalition is described as follows.
1) Player: {H, P} and {T}.
2) Strategy set: and .
3) Payoff: coalition payoff and .
The purpose of an HPS consisting of an HDR plant, a TS plant, and a PV plant is to rely on a stable HDR plant to provide reserves for the PV plant. This equates the PV plant to a dispatchable plant and satisfies the requirements of the power grid with regard to the power fluctuation rate. Therefore, the HDR-PV coalition should also satisfy the EFC constraints during operation:
(38) |
where is the allowed fluctuation rate; and is the reserves provided by the HDR plant to the PV plant, which is modeled as:
(39) |
where is the mass flow rate of the brine to be adjusted when the reserves are called.
The equilibrium solution of the capacity allocation for the HDR-PV coalition is expressed as:
(40) |
The constraints of include (2)-(4), (33)-(35), (38), and (39). The constraints of include (23)-(31).
3) Capacity Allocation for {{T, P}, H}
In the TS-PV coalition, on the one hand, the TS plant can absorb excess PV power. On the other hand, it can provide up reserves for the PV plant. This reduces the curtailment losses and load shedding penalties of the PV plant and increases the coalition payoff. The CG pattern for the capacity allocation of the TS-PV coalition is described as follows.
1) Player: {T, P} and {H}.
2) Strategy set: and .
3) Payoff: coalition payoff and .
Similar to the HDR-PV coalition, the TS-PV coalition is subject to the EFC constraint in its operation:
(41) |
where is the reserve provided by the dry storage thermal power plant to the PV plant, which is modeled as:
(42) |
where is the mass flow rate of the HTO.
The equilibrium solution of the capacity allocation for the TS-PV coalition is expressed as:
(43) |
The constraints of include (23)-(31), (33)-(35), (41), and (42). The constraint of includes (1).
4) Capacity Allocation for {{H, T, P}}
In the HDR-TS-PV coalition, the TS plant can absorb the surplus PV power and geothermal power to achieve profitability. The HDR plan increases the geothermal energy value through the TS plant, and the PV plant reduces the curtailment losses and load shedding penalties through the reserves provided by the HDR plant and the TS plant. This increases the total payoff. The CG pattern for the capacity allocation of the HDR-TS-PV coalition is described as follows.
1) Player: {H, T, P}.
2) Strategy set: .
3) Payoff: coalition payoff .
The EFC constraint of the HDR-TS-PV coalition is given as:
(44) |
The equilibrium solution of the capacity allocation for the HDR-TS-PV coalition is expressed as:
(45) |
The constraints of (45) include (2)-(4), (23)-(31), (33)-(35), (39), (42), and (44).
The aforementioned NCG and CG approaches involve upper and lower bound constraints on each variable. These are not presented here individually, owing to space constraints.
5) Constraint Linearization
The product term of two decision variables in (4) and (39) causes the whole capacity allocation approach to be nonlinear. This paper addresses the Boolean expansion method [
Define as the set of segments. can be divided into segments as:
(46) |
where is the discrete value of after piecewise linearization; is a 0-1 variable, indicating whether the current segment at time is included in ; and is the minimum temperature difference. Then in (4) can be changed to:
(47) |
(48) |
(49) |
where and are the minimum and maximum values of , respectively; and .
It can be observed that (47) with as the variable is linear. In the same way, (39) can also be transformed into a linear equation. Then, the proposed approaches can be solved using MATLAB2016b and CPLEX12.8 solvers.
The scenario is constructed based on practical data from the Gonghe Basin, Qinghai, China. The region has a plateau continental climate as one of the 10 GW level clean energy bases with abundant solar energy resources and is also the only high-quality HDR resource area in China. The operation parameters of the HDR plant are selected according to the local HDR resources [
Parameter | Value | Parameter | Value |
---|---|---|---|
Temperature of production well | 200 ℃ | Annual investment of ORC generator | 200 |
Mass flow range of production well |
50-75 kg/s [ | Annual investment of TEST | 38.7 |
Minimum reinjection temperature | 40 ℃ | Price of HTO | 3020 $/ton |
Initial temperature of HTO | 25 ℃ | Annual investment of PV plant | 33 |
Specific heat capacity of HTO | 1.938 | Price of thermal energy | 0.07 $/kWh |
Specific heat capacity of brine | 4.2 kJ/(kg·°C) | Efficiency of exchanger | 90% |
Efficiency of ORC generator |
13.2% [ | Prediction error of PV plant | 20% |
Insulation coefficient | 99% | Permitted fluctuation rate | |
Efficiency of electric heater | 98% | Penalty coefficient | 2-10 |
To focus more on the competition and cooperation among the three players, the simulation in this study satisfies the following assumptions:
1) HDR plants are double-well systems [
2) The effects of grid congestion and line capacity are neglected.
3) The installed capacity of the HPS is 100 MW.
In the proposed HPS, HDR geothermal energy is not affected by seasonal variations. Meanwhile, PV plants are susceptible to weather variations, and their day-ahead prediction accuracy is closely related to the weather state [

Fig. 2 Solar irradiance and TOU electricity price of typical days. (a) Rainy day. (b) Sunny day. (c) Cloudy day. (d) Overcast day.
The sample sets of data on various typical days are , , , and , respectively. The corresponding probability sets of their samples are , , , and , respectively. Assuming that the four weather conditions are mutually exclusive, the set of total samples is . Its corresponding probability is obtained from the joint probability distribution of the probability sets of the four types of samples. This paper uses the Latin hypercube method [
The NCG approach for capacity allocation of the proposed HPS is carried out using 3% as the allowed fluctuation rate. The capacity allocation results using the NCG approach are shown in
Coalition form | (MW) | (MW) | (MW) | Payoff of each player (M$/year) | Total payoff (M$/year) |
---|---|---|---|---|---|
{H}, {T}, {P} | 6.6 | 0 | 93.4 | , , | 17.00 |
As shown in NCG, the TS plant is not profitable, the PV plant has a large amount of curtailment and load shedding losses, and the HDR plant is incapable of utilizing the TOU electricity price to increase its payoff. The capacity allocation results using the CG approach, where the three players are willing to cooperate to increase the total profits of the proposed HPS and their individual payoffs simultaneously, are shown in
Coalition form | (MW) | (MW) | (MW) | Payoff of each player (M$/year) | Total payoff (M$/year) |
---|---|---|---|---|---|
{H, T, P} | 6.6 | 4.49 | 88.91 | 18.45 | |
{H, T}, {P} | 6.6 | 7.55 | 85.85 | , | 16.98 |
{H, P}, {T} | 6.6 | 0 | 93.40 | , | 17.35 |
{H}, {T, P} | 6.6 | 5.18 | 88.22 | , | 15.92 |

Fig. 3 Operation results of each player in HDR-TS-PV coalition on typical days.
No matter how the environmental conditions change, the TS plant permanently stores geothermal energy during the low-electricity-price periods and profits from the high-electricity-price periods to realize the peak shaving services. In terms of providing reserves to stabilize the fluctuation of the PV plant,
As mentioned above, the three players increase the total payoff of the proposed HPS in CG and meet the overall rationality. Then, the total payoff needs to be allocated to the coalition members reasonably and without bias to satisfy their individual rationality, thereby promoting the stability of the coalition. The stability of the HDR-TS-PV coalition is the premise for further analysis of the proposed HPS and the benefits of the players. We use the minimum core (core) method to analyze the stability of the proposed HPS. The result of the stable core set is shown in the blue region in

Fig. 4 Stable core set and Shapley value.
The Shapley value is the fairest and most reasonable value of the payoff allocation among game players. It is based on the marginal contribution and is widely used in the payoff allocation of the CG approach [
Player | Payoff ($/year) | Additional profit ($/year) |
---|---|---|
HDR plant | 4717000 | 1057000 |
TS plant | 349000 | 349000 |
PV plant | 13384000 | 44000 |
As shown in
Therefore, the cooperation is preferred over the competition in the proposed HPS. The capacity allocation using a CG approach in which the players form a grand coalition that can maximize the payoff of both the whole HPS and individual players. As can be observed from the payoff allocation result obtained from the Shapley value shown in
In addition to the physical characteristics of power sources and environmental conditions, the electricity price, penalty coefficient, and allowed fluctuation rate are the primary power grid parameters involved in the paper. The profit of HPS all comes from the sales of electricity to the power grid. Therefore, the electricity price is the key factor that affects the coalition of all players in HPS and the capacity allocation strategy. Based on the TOU electricity price shown in

Fig. 5 Influence of electricity price on payoff and stability of HDR-TS-PV coalition.
In
The load shedding penalty coefficient determines the price paid by the PV plant when it does not satisfy the fluctuation rate requirement and plays a decisive role in the willingness of the PV plant to participate in the cooperation. Therefore, it is necessary to analyze its impact on the HDR-TS-PV coalition. Under the assumption that the total capacity of the proposed HPS is 100 MW, the stability of the HDR-TS-PV coalition is analyzed by setting the penalty coefficient p as 5, 6, 7, 8, and 9, respectively, as shown in

Fig. 6 Influence of penalty coefficient on stability of HDR-TS-PV coalition.
As shown in
The previous simulations show that the three players would eventually form a stable coalition in the proposed HPS with a high penalty coefficient and electricity price. To further investigate the role of HDR plants and TS plants in smoothing out power fluctuations and improving the grid-connection reliablity of PV plants in the system, we relax the limit on the total capacity of the proposed HPS. Subsequently, we perform the sensitivity analysis on the impact of allowed fluctuation rate on capacity allocation, and the results are shown in
(%) | Capacity of HDR plant (MW) | Capacity of TS plant (MW) | Capacity of PV plant (MW) | Total quality of HTO (ton) | Payoff of HPS ($/year) | Annual cost of HPS ($/year) |
---|---|---|---|---|---|---|
3 | 6.6 | 10 | 138.67 | 2786 | 25190000 | 7200000 |
5 | 6.6 | 10 | 177.28 | 2803 | 32930000 | 8510000 |
7 | 6.6 | 10 | 241.62 | 2801 | 43390000 | 10570000 |
10 | 6.6 | 10 | 414.49 | 2799 | 71410000 | 16120000 |
As shown in
Furthermore, the influence of the allowed fluctuation rate on the stability and payoff allocation of the HDR-TS-PV coalition is analyzed, and the results are shown in

Fig. 7 Influence of allowed fluctuation rate on stability and payoff allocation of HDR-TS-PV coalition.
Moreover, the total quality of HTO in
The HDR geothermal energy has the advantages of being stable, continuous, and unaffected by meteorological factors, which is highly preferable for providing energy storage services for grid-connected PV plants in alpine and high-altitude areas. However, conventional HDR plants are not adequately flexible to operate under such conditions and cooperate with TS plants to form a hybrid PV-storage power system. In this paper, we design the framework of an HPS consisting of HDR, TS, and PV plants, adopt the concept of game theory to construct the game pattern model of the proposed HPS with the HDR plant, TS plant, and PV plant as the players, and propose the payoff function of each player. Furthermore, the NCG and CG approaches for capacity allocation to maximize the payoff of the proposed HPS are established based on the capacity allocation strategy of each game player.
Finally, the model and approaches proposed in this paper are validated using the data of practical PV plants and HDR geothermal energy resources in the Gonghe Basin, Qinghai, China as a case study. The results show that the capacity allocation model proposed in this paper can effectively increase the total payoff of the HPS and the individual payoff of each player. Simultaneously, it reduces the system power fluctuation and enhances the grid-connection reliability through EFC constraints. A parameter sensitivity analysis also shows that the penalty coefficient plays a decisive role in the stability of the HDR-TS-PV coalition.
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