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Optimal and Elastic Energy Trading for Green Microgrids: a two-Layer Game Approach

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Abstract

Energy trading mechanism for microgrids has an inherent two-layer architecture, in which the energy trading at the first layer is between a microgrid aggregator and consumers (e.g., households) within a microgrid, and the second layer is referred to as the wide area energy trading among multiple microgrids. This paper employs a two-layer game approach to achieve optimal and elastic energy trading for microgrids and improve utilization of green energy. First, a non-cooperative game is developed inside a microgrid, in which the relationship among household users is non-cooperative, and they adjust load schedules to optimize their utilities while trading energy with the microgrid aggregator. Second, a multileader-multifollower Stackelberg game is employed for the energy trading among microgrids. The role of a microgrid (as an energy buyer or seller) in the energy market is based on the result of the first game, and it can elastically adjust its energy trading strategy by charging or discharging the energy storage device. The existence and uniqueness of the equilibriums for the two games are proven. We also present algorithms that can reach the equilibriums where players achieve optimal utilities. Simulation results show that the proposed two-layer energy trading is able to significantly improve the utilization of microgrids’ green energy.

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Funding

W. Zhou was with the Guangdong University of Technology and is now with the University of Electronic Science and Technology Of China, Zhongshan Institute. The work of H. Zhang and W. Zhong was supported by National Natural Science Foundation (NSF) of China under grant 61501127. The work of R. Yu was supported by NSF of China under grant 61422201 and 61370159. The work of R. Yu, H. Zhang, and W. Zhong was supported by NSF of Guangdong under grant 2016A030313705, Special Fund for Applied Science and Technology (S&T) of Guangdong under grant 2015B010129001, 2014B090907010, 2015B010106010, Fund for S&T Talents of Guangdong under grant 2014TQ01X100 and Guangzhou Fund for Zhujiang S&T New Stars under grant 2014J2200097.

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Authors and Affiliations

  1. Guangdong Key Laboratory of IoT Information Technology, Guangdong University of Technology, Guangzhou, 510006, China

    Wenhui Zhou, Weifeng Zhong, Haochuan Zhang & Rong Yu

  2. Zhongshan Institute, University of Electronic Science and Technology of China, Zhongshan, 528402, China

    Wenhui Zhou & Jie Wu

  3. Guangdong University of Petrochemical Technology, Guangzhou, 510006, China

    Lei Shu

Authors
  1. Wenhui Zhou
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  2. Jie Wu
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  3. Weifeng Zhong
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  4. Haochuan Zhang
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  5. Lei Shu
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  6. Rong Yu
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Correspondence to Haochuan Zhang.

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Zhou, W., Wu, J., Zhong, W. et al. Optimal and Elastic Energy Trading for Green Microgrids: a two-Layer Game Approach. Mobile Netw Appl 24, 950–961 (2019). https://doi.org/10.1007/s11036-018-1027-x

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  • DOI: https://doi.org/10.1007/s11036-018-1027-x

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