Decentralized Game-Based Robustly Planning Scheme for Distribution Network and Microgrids Considering Bilateral Energy Trading

Abstract

In the emerging electricity market, bilateral transactions can be conducted among the distribution network (DN) and microgrids (MGs). It is essential to consider the effects of bilateral energy trading among multiple stakeholders at the planning level. In this paper, a bi-level robustly game-based planning framework is proposed for DN and MGs. To address the multiple non-convexities of traditional robust planning problems, a linear robust counterpart is developed to model the uncertainty of renewable energy sources. Then, the non- continuous robust planning problem is further transformed into an iterative process by alternating optimization procedure (AOP) for the proof of Nash equilibrium (NE) and convergence of distributed algorithms. In each iteration, the upper level utilizes the Nash bargaining solution (NBS) to clear the bilateral transaction electricity and payments in the convex subset generated by the lower level, while the lower level determines the individual planning problem locally with fixed transaction contracts obtained from the upper level. It is proved that the bi-level planning framework benefits all investors and minimizes social costs. Meanwhile, distributed algorithms are adopted to ensure the synchronization and privacy of stakeholders. Simulations on the IEEE 33-bus system demonstrate the effectiveness of the proposed framework.