Quantitative energy trading strategies in cooperative microgrids in electricity market: A multi-dimensional analysis of risk and return

Abstract

A quantitative energy trading model for cooperatively operating several connected microgrids (MGs) in the energy market environments is presented in the paper. The model emphasizes the coordination and management of coalition MGs and utilities to optimize smart grids to maximize their profit returns. Energy transfer plans are the sole control signals that are deployed for achieving optimum control within MGs. Case studies are used to describe uncertainty regarding renewable power production and load demands. Using conditional value-at-risk, the stochastic method reduces the likelihood of aggregators being affected by fluctuations in power prices associated with these uncertainties. Furthermore, the model evaluates the impact of cooperative operations on the performance of the MG portfolio during the lifespan of the scheme. The suggested risk-limited approach is validated by the digital twin and simulating a number of scenarios. According to the study findings, the suggested model limits the profit return variation possibility for MGs at the expense of a slight decrease in predicted profits.