Optimal energy management system for strategic prosumer microgrids: An average bidding algorithm for prosumer aggregators

Abstract

The economic dispatch problem for a Microgrid with independent prosumers, presents a market scenario where the prosumers act strategically maximizing their own benefits, and restricting strategic information such as energy production costs. In this context, the power allocation needs to follow a bidding process instead of a conventional economic dispatch process. Based on a game theory approach, a new average bidding algorithm is proposed, which achieves that the prosumer bids converge to an exact and efficient Nash equilibrium (ENE). At the ENE the power allocation minimizes the total energy cost in the Microgrid, and the set of bids maximizes the individual profit of each prosumer. Convergence conditions of the algorithm are presented, and it is shown that unlike of previous approaches the accuracy of the ENE does not depend on the step-size of the iterations. The performance of the bidding process is verified in numerical simulations, finding advantages of the proposed strategy respect to the Nash equilibrium seeking algorithm in terms of accuracy, and applicability for online operation.