Distributed Energy Trading in Microgrids: A Game-Theoretic Model and Its Equilibrium Analysis
Top Cited Papers
- 1 June 2015
- journal article
- Published by Institute of Electrical and Electronics Engineers (IEEE) in IEEE Transactions on Industrial Electronics
- Vol. 62 (6), 3524-3533
- https://doi.org/10.1109/tie.2014.2387340
Abstract
This paper proposes a distributed mechanism for energy trading among microgrids in a competitive market. We consider multiple interconnected microgrids in a region where, at a given time, some microgrids have superfluous energy for sale or to keep in storage facilities, whereas some other microgrids wish to buy additional energy to meet local demands and/or storage requirements. Under our approach, sellers lead the competition by independently deciding the amount of energy for sale subject to a tradeoff between the attained satisfaction from the received revenue and that from the stored energy. Buyers follow the sellers' actions by independently submitting a unit price bid to the sellers. Correspondingly, the energy is allocated to the buyers in proportion to their bids, whereas the revenue is allocated to the sellers in proportion to their sales. We study the economic benefits of such an energy trading mechanism by analyzing its hierarchical decision-making scheme as a multileader-multifollower Stackelberg game. We show that distributing the energy based on a well-defined utility function converges to a unique equilibrium solution for maximizing the payoff of all participating microgrids. This game-theoretic study provides an incentive for energy trading among microgrids in future power grids.Keywords
Funding Information
- City University of Hong Kong (9380044)
- Research Grants Council of the Hong Kong Special Administrative Region of China (123012)
- Energy, Environment, Water, and Sustainability (EEWS) Research Center of the Korea Advanced Institute of Science and Technology (EEWS-2014-N01140044)
This publication has 44 references indexed in Scilit:
- Leader-Follower Strategies for Energy Management of Multi-MicrogridsIEEE Transactions on Smart Grid, 2013
- A combined modeling approach for wind power feed-in and electricity spot pricesEnergy Policy, 2013
- Modeling of financial incentives for investments in energy storage systems that promote the large-scale integration of wind energyApplied Energy, 2013
- Photovoltaic metering configurations, feed‐in tariffs and the variable effective electricity prices that resultIET Renewable Power Generation, 2013
- Microgrids energy trading in islanding modePublished by Institute of Electrical and Electronics Engineers (IEEE) ,2012
- Multiagent-Based Distributed-Energy-Resource Management for Intelligent MicrogridsIEEE Transactions on Industrial Electronics, 2012
- Multiobjective Intelligent Energy Management for a MicrogridIEEE Transactions on Industrial Electronics, 2012
- Energy Management and Operational Planning of a Microgrid With a PV-Based Active Generator for Smart Grid ApplicationsIEEE Transactions on Industrial Electronics, 2011
- Evaluating the benefits of an electrical energy storage system in a future smart gridEnergy Policy, 2010
- Grid of the futureIEEE Power and Energy Magazine, 2009