Energy management of multi-microgrids based on game theory approach in the presence of demand response programs, energy storage systems and renewable energy resources

Abstract

In the deregulated power market, decentralized scheduling of microgrids is a complex problem with many technical and economic barriers. Achieving a comprehensive model that satisfies all technical, security and economic constraints and prevents market power is one of the concerns of distribution system operators. Therefore, this paper presents a two-stage framework in which DFR is implemented to satisfy technical and security constraints and microgrids day-ahead scheduling is done by a game-theoretic approach to avoid market power. The proposed model is implemented on a modified 69-bus distribution network by implementing a shiftable-load demand response (DR) program. The problem is formulated as a two-stage model: In the first stage, the distribution feeder reconfiguration (DFR) problem is solved to reduce losses, while in the second stage, the Disco and microgrids day-ahead scheduling problem is solved by a multi-objective optimization method based on the game theory with regard to the obtained topology. The optimization problem is also modeled as a mixed-integer quadratic programming (MIQCP) problem, solved using the CPLEX solver in GAMS software. The results show the high impact of the optimal topology on the decrease in loss, voltage deviation, and operation costs. In addition, the operation results indicate that the multi-objective optimization based on the game-theoretic method not only reduced market power, but also reduced operating costs by 23.7%.