Optimal Energy Management in Multiple Microgrid Systems in Retail Market Based On Interactive Hierarchical Architecture

Designing market operator (MO) combined with distributed network operator (DNO) for systems constituting a network of Microgrids (MG) is the main goal of this paper. Energy storage (ES) devices and demand response resources from one MG can also participate as consumer and/or generator (known as Prosumer) with other MGs within the proposed structure. When the Prosumers are functioning as generators, they try to maximize their profit. However, the Prosumers try to minimize market clearing price (MCP) and to participate in the game structure for reaching Nash equilibrium when they are participating as consumer. The outcome of the proposed algorithm is the optimal power share for different players in the market which satisfies the aforementioned goals for each player. Additionally, the amount of obtained profit by each player is determined. The proposed controller is a hierarchical bi-level controller and its ability has been evaluated in the optimum control of a network of MGs consisting of distributed energy resources. The simulation results show the effectiveness of the proposed algorithm to encourage the market participation and to improve the profit for participants.