Optimal energy management of microgrids in the retail market with bidding strategy based on game theory approach considering coalition formation among generation units

Coalition formation for small scale units is a key topic for social welfare maximization in multi-agent systems. This paper presents an agent-based electricity market environment using Nikaido-Isoda/relaxation algorithm, taking advantage of its ability to provide a platform to seek a coalition partner among generation and consumption units. In the proposed coalitional topology, generation units in the microgrid are capable of negotiating both in the market, and internally, with their neighbours, in order to combine and manage their individual specific characteristics and goals considering the strategy and objectives of the microgrid itself. Another new feature is the development of particular individual facilitators to manage the communications amongst the members of each coalition. On the other hand, the possibility of different coalitions among members is investigated to select the best coalitional topology. This paper provides a formal model for a self-organization mechanism allowing unit supervising agents to dynamically form coalitions for the supply and demand of power products on electricity markets while taking topology-related aspects into account. In addition, a global study on the results of the local electricity market is performed, to compare and analyze different coalitions might occur for defining consistent and adequate strategies to integrate into the agents.