Cooperative distributed energy generation and energy trading for future smart grid

Abstract

In this paper, we investigate the cooperative distributed energy generation and energy trading for future smart grid. In our model, a group of energy users, who are equipped with the capabilities of distributed energy generation, are allowed to trade energy in a cooperative manner with the goal to minimize their total energy-provisioning cost while meeting the local demand of each individual energy user. Moreover, each user also expects to benefit from the cooperative energy generation and trading with the others. Motivated by these objectives, we first jointly determine the optimal energy scheduling decisions for all energy users such that their total energy-provisioning cost can be minimized. Then, based on the optimal energy scheduling decisions, we further determine the optimal transaction costs associated with the users' energy trading to ensure that each of them can positively benefit from the cooperation. Extensive numerical results are provided to show the advantages of the proposed cooperative energy generation and trading model as well as our proposed algorithms to achieve the optimal solutions.