Applying game-theory to evaluate incentives for cooperative behaviour between households within the distribution grid

This thesis presents a novel perspective on addressing congestion within distribution grids for electricity. Departing from conventional approaches from literature, which often rely on complex market or control structures, this study applies common-pool resource theory to the distribution grid, treating it as a socio-technical system. By applying game theory and reinforcement learning, the study models interactions among self-interested players sharing grid capacity, yielding insights into congestion management strategies. The findings underscore the potential of community-based approaches, and emphasise the need for institutional facilitation through the provision of data and the redistribution of funds. The study advocates for a holistic approach to congestion management that aligns with sustainable energy goals, cautioning against overreliance on infrastructure investment and advocating for voluntary cooperation-based strategies that encourage conscientious energy use.