Intelligent Management of Microgrid for Optimal Participation in Electricity Market Using Game Theory

Abstract

In this model, the electricity market is highly penetrated with renewable resources. As renewable is the backbone of the system, the system is extremely dynamic in nature. So, in this paper, we have studied the reaction and behavior of both market participants i.e., the supplier and the consumer to the dynamic system. By the means of noncooperative game theory, demand side management or load management or optimized load is generated according to the suitability of the price. By the means of cooperative game theory, each supplier's contribution of power to accomplish the optimized demand is decided. Besides solar and wind, battery and diesel generators (DGs) are also provided as back up supply. Grid is also presented here as an independent system operator (ISO) to feed power during power deficit condition otherwise the renewable suppliers can sell their surplus power to the grid. By keeping in mind both participants profit, an optimum price has generated to maintain equilibrium in the electricity market. The entire study takes challenges for the interaction of the conceivable upcoming technologies, namely smart grids with renewable integration and the use of game theory for the economic development.