Dynamic Economic Dispatch for Multi-Microgrid System using Game Theory

Abstract

The growth of the interest in the Distributed Energy Resources in the Active Distribution Networks, along with the increasing requirements of the customers, leads to the issue of the optimal energy scheduling. Forming of the microgrids for the generation of the local energy can solve this problem by improving the flexibility and reliability of the system by bringing selfsupportable systems. Unfortunately, in case of energy excess or demand in the microgrid, the trading should be conducted with the grid at the established prices known as Feed-in tariff and Time-of-use. These prices not optimal for microgrids’ trading, as energy generated by microgrid is costing less than the price set by the grid for buying, and more than the price set for selling. Some counties completely eliminated trading with the microgrids, which leads to the significant challenges to the self-controlled operation systems. By combining ideas of the smart grid and microgrid, especially the advantages of two approaches, the Multi-Microgrid system comes into the picture. The Multi-Microgrid system allows energy exchange between the microgrids in the network by sharing the excess energy with those in demand. Nevertheless, the presence of the Transactive Energy Management will not fully solve the issue of the total load and generation difference in the Multi-Microgrid system. This master thesis work proposes the use of the Dynamic Economic Dispatch for the MultiMicrogrid system with Transactive Energy Management, where Game Theory is used for the identification of the bidding for the microgrids. In the proposed approach Dynamic Economic Dispatch is a way of effective management of the microgrids, with providing secure and economically optimal energy scheduling. Besides, use of the Dynamic Economic Dispatch for the Multi-Microgrid system management will motivate microgrids to participate in the energy auctions, which also leads to the diminution of the difference between the load and the generation in the system. Also, author of work proposes using of three different platforms for energy exchange: trading with the grid, energy trading with centralized structure, and decentralized Transactive Energy management, where the aim is to analyze the results of the different approaches and define the best among them.