IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v239y2019icp133-141.html
   My bibliography  Save this article

Coalitional game theory based local power exchange algorithm for networked microgrids

Author

Listed:
  • Mei, Jie
  • Chen, Chen
  • Wang, Jianhui
  • Kirtley, James L.

Abstract

The future distribution network may encompass a large number of microgrids, in which case local networked microgrids can be formed and all the microgrids in the network be connected to the main grid through a distribution sub-station. To improve the efficiency of the entire network rather than focusing on improving the efficiency and reliability of each microgrid, this paper proposes a coalitional-game-theory-based local power exchange algorithm to identify incentives for coalitional operation and help microgrids in the network trade power locally with neighboring microgrids, so as to meet their own power requirements while achieving higher expected individual utility. Compared with the traditional operation situation, simulation results show that the proposed coalitional- game-theory-based local power exchange algorithm can help increase individual microgrid utility in the network. When there are 30 microgrids in the network, for example, each microgrid is expected to have a 16% increment of individual utility on average.

Suggested Citation

  • Mei, Jie & Chen, Chen & Wang, Jianhui & Kirtley, James L., 2019. "Coalitional game theory based local power exchange algorithm for networked microgrids," Applied Energy, Elsevier, vol. 239(C), pages 133-141.
    • Handle: RePEc:eee:appene:v:239:y:2019:i:c:p:133-141
    DOI: 10.1016/j.apenergy.2019.01.208
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261919302296
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2019.01.208?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jowder, Fawzi A.L., 2009. "Wind power analysis and site matching of wind turbine generators in Kingdom of Bahrain," Applied Energy, Elsevier, vol. 86(4), pages 538-545, April.
    2. Motalleb, Mahdi & Ghorbani, Reza, 2017. "Non-cooperative game-theoretic model of demand response aggregator competition for selling stored energy in storage devices," Applied Energy, Elsevier, vol. 202(C), pages 581-596.
    3. Inami, Yusuke, 2018. "Which equilibrium yields the highest expected revenue in second-price sealed-bid auctions?," Economics Letters, Elsevier, vol. 167(C), pages 97-98.
    4. Janko, Samantha A. & Johnson, Nathan G., 2018. "Scalable multi-agent microgrid negotiations for a transactive energy market," Applied Energy, Elsevier, vol. 229(C), pages 715-727.
    5. Krzysztof R. Apt & Andreas Witzel, 2009. "A Generic Approach To Coalition Formation," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 11(03), pages 347-367.
    6. Craparo, Emily & Karatas, Mumtaz & Singham, Dashi I., 2017. "A robust optimization approach to hybrid microgrid operation using ensemble weather forecasts," Applied Energy, Elsevier, vol. 201(C), pages 135-147.
    7. Ortega, Josué, 2018. "Social integration in two-sided matching markets," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 119-126.
    8. Banez-Chicharro, Fernando & Olmos, Luis & Ramos, Andres & Latorre, Jesus M., 2017. "Estimating the benefits of transmission expansion projects: An Aumann-Shapley approach," Energy, Elsevier, vol. 118(C), pages 1044-1054.
    9. Agüera-Pérez, Agustín & Palomares-Salas, José Carlos & González de la Rosa, Juan José & Florencias-Oliveros, Olivia, 2018. "Weather forecasts for microgrid energy management: Review, discussion and recommendations," Applied Energy, Elsevier, vol. 228(C), pages 265-278.
    10. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
    11. Paul Klemperer, 1999. "Auction Theory: A Guide to the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 13(3), pages 227-286, July.
    12. Fan, Songli & Ai, Qian & Piao, Longjian, 2018. "Bargaining-based cooperative energy trading for distribution company and demand response," Applied Energy, Elsevier, vol. 226(C), pages 469-482.
    13. Du, Yan & Wang, Zhiwei & Liu, Guangyi & Chen, Xi & Yuan, Haoyu & Wei, Yanli & Li, Fangxing, 2018. "A cooperative game approach for coordinating multi-microgrid operation within distribution systems," Applied Energy, Elsevier, vol. 222(C), pages 383-395.
    14. Li, Yan & Zhang, Peng & Yue, Meng, 2018. "Networked microgrid stability through distributed formal analysis," Applied Energy, Elsevier, vol. 228(C), pages 279-288.
    15. Zhang, Chenghua & Wu, Jianzhong & Zhou, Yue & Cheng, Meng & Long, Chao, 2018. "Peer-to-Peer energy trading in a Microgrid," Applied Energy, Elsevier, vol. 220(C), pages 1-12.
    16. Faria, Victor. A.D. & de Queiroz, Anderson Rodrigo & Lima, Luana M.M. & Lima, José W.M., 2018. "Cooperative game theory and last addition method in the allocation of firm energy rights," Applied Energy, Elsevier, vol. 226(C), pages 905-915.
    17. Lu, Tianguang & Ai, Qian & Wang, Zhaoyu, 2018. "Interactive game vector: A stochastic operation-based pricing mechanism for smart energy systems with coupled-microgrids," Applied Energy, Elsevier, vol. 212(C), pages 1462-1475.
    18. Uetake, Kosuke & Watanabe, Yasutora, 2012. "A note on estimation of two-sided matching models," Economics Letters, Elsevier, vol. 116(3), pages 535-537.
    19. Giaouris, Damian & Papadopoulos, Athanasios I. & Patsios, Charalampos & Walker, Sara & Ziogou, Chrysovalantou & Taylor, Phil & Voutetakis, Spyros & Papadopoulou, Simira & Seferlis, Panos, 2018. "A systems approach for management of microgrids considering multiple energy carriers, stochastic loads, forecasting and demand side response," Applied Energy, Elsevier, vol. 226(C), pages 546-559.
    20. Sun, Liang & Chen, Wenying, 2017. "Development and application of a multi-stage CCUS source–sink matching model," Applied Energy, Elsevier, vol. 185(P2), pages 1424-1432.
    21. Lo Prete, Chiara & Hobbs, Benjamin F., 2016. "A cooperative game theoretic analysis of incentives for microgrids in regulated electricity markets," Applied Energy, Elsevier, vol. 169(C), pages 524-541.
    22. Banez-Chicharro, Fernando & Olmos, Luis & Ramos, Andres & Latorre, Jesus M., 2017. "Beneficiaries of transmission expansion projects of an expansion plan: An Aumann-Shapley approach," Applied Energy, Elsevier, vol. 195(C), pages 382-401.
    23. Rachel E. Kranton & Deborah F. Minehart, 2001. "A Theory of Buyer-Seller Networks," American Economic Review, American Economic Association, vol. 91(3), pages 485-508, June.
    24. Razeghi, Ghazal & Gu, Fei & Neal, Russell & Samuelsen, Scott, 2018. "A generic microgrid controller: Concept, testing, and insights," Applied Energy, Elsevier, vol. 229(C), pages 660-671.
    25. Klemperer, Paul, 1999. " Auction Theory: A Guide to the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 13(3), pages 227-86, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhou, Yuekuan & Lund, Peter D., 2023. "Peer-to-peer energy sharing and trading of renewable energy in smart communities ─ trading pricing models, decision-making and agent-based collaboration," Renewable Energy, Elsevier, vol. 207(C), pages 177-193.
    2. Bhatti, Bilal Ahmad & Broadwater, Robert, 2020. "Distributed Nash Equilibrium Seeking for a Dynamic Micro-grid Energy Trading Game with Non-quadratic Payoffs," Energy, Elsevier, vol. 202(C).
    3. Sun, Lu & Xu, Qingshan & Song, Yun, 2022. "Game-theoretic genetic-priced optimization of multiple microgrids under uncertainties," Applied Mathematics and Computation, Elsevier, vol. 426(C).
    4. Wu, Ying & Wu, Yanpeng & Cimen, Halil & Vasquez, Juan C. & Guerrero, Josep M., 2022. "Towards collective energy Community: Potential roles of microgrid and blockchain to go beyond P2P energy trading," Applied Energy, Elsevier, vol. 314(C).
    5. Mahdi Azimian & Vahid Amir & Reza Habibifar & Hessam Golmohamadi, 2021. "Probabilistic Optimization of Networked Multi-Carrier Microgrids to Enhance Resilience Leveraging Demand Response Programs," Sustainability, MDPI, vol. 13(11), pages 1-30, May.
    6. Fina, Bernadette & Auer, Hans & Friedl, Werner, 2019. "Profitability of PV sharing in energy communities: Use cases for different settlement patterns," Energy, Elsevier, vol. 189(C).
    7. Nawaz, Arshad & Zhou, Min & Wu, Jing & Long, Chengnian, 2022. "A comprehensive review on energy management, demand response, and coordination schemes utilization in multi-microgrids network," Applied Energy, Elsevier, vol. 323(C).
    8. Li, Zhengmao & Wu, Lei & Xu, Yan & Wang, Luhao & Yang, Nan, 2023. "Distributed tri-layer risk-averse stochastic game approach for energy trading among multi-energy microgrids," Applied Energy, Elsevier, vol. 331(C).
    9. Kell, Nicholas P. & van der Weijde, Adriaan Hendrik & Li, Liang & Santibanez-Borda, Ernesto & Pillai, Ajit C., 2023. "Simulating offshore wind contract for difference auctions to prepare bid strategies," Applied Energy, Elsevier, vol. 334(C).
    10. Mohammad Javad Bordbari & Fuzhan Nasiri, 2024. "Networked Microgrids: A Review on Configuration, Operation, and Control Strategies," Energies, MDPI, vol. 17(3), pages 1-28, February.
    11. Filipe Bandeiras & Álvaro Gomes & Mário Gomes & Paulo Coelho, 2023. "Exploring Energy Trading Markets in Smart Grid and Microgrid Systems and Their Implications for Sustainability in Smart Cities," Energies, MDPI, vol. 16(2), pages 1-41, January.
    12. Wang, Yifei & Wang, Xiuli & Shao, Chengcheng & Gong, Naiwei, 2020. "Distributed energy trading for an integrated energy system and electric vehicle charging stations: A Nash bargaining game approach," Renewable Energy, Elsevier, vol. 155(C), pages 513-530.
    13. Romain Mannini & Julien Eynard & Stéphane Grieu, 2022. "A Survey of Recent Advances in the Smart Management of Microgrids and Networked Microgrids," Energies, MDPI, vol. 15(19), pages 1-37, September.
    14. Mohammad Sadeghi & Shahram Mollahasani & Melike Erol-Kantarci, 2021. "Cost-Optimized Microgrid Coalitions Using Bayesian Reinforcement Learning," Energies, MDPI, vol. 14(22), pages 1-20, November.
    15. Han, Dongho & Lee, Jay H., 2021. "Two-stage stochastic programming formulation for optimal design and operation of multi-microgrid system using data-based modeling of renewable energy sources," Applied Energy, Elsevier, vol. 291(C).
    16. Bhatti, Bilal Ahmad & Broadwater, Robert, 2019. "Energy trading in the distribution system using a non-model based game theoretic approach," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    17. Chen, Yang & Park, Byungkwon & Kou, Xiao & Hu, Mengqi & Dong, Jin & Li, Fangxing & Amasyali, Kadir & Olama, Mohammed, 2020. "A comparison study on trading behavior and profit distribution in local energy transaction games," Applied Energy, Elsevier, vol. 280(C).
    18. Janko, Samantha & Johnson, Nathan G., 2020. "Reputation-based competitive pricing negotiation and power trading for grid-connected microgrid networks," Applied Energy, Elsevier, vol. 277(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Churkin, Andrey & Bialek, Janusz & Pozo, David & Sauma, Enzo & Korgin, Nikolay, 2021. "Review of Cooperative Game Theory applications in power system expansion planning," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    2. Gabriel Santos & Pedro Faria & Zita Vale & Tiago Pinto & Juan M. Corchado, 2020. "Constrained Generation Bids in Local Electricity Markets: A Semantic Approach," Energies, MDPI, vol. 13(15), pages 1-27, August.
    3. Mezzetti, Claudio & Pekec, Aleksandar Sasa & Tsetlin, Ilia, 2008. "Sequential vs. single-round uniform-price auctions," Games and Economic Behavior, Elsevier, vol. 62(2), pages 591-609, March.
    4. Wedad Elmaghraby, 2005. "The Effect of Asymmetric Bidder Size on an Auction's Performance: Are More Bidders Always Better?," Management Science, INFORMS, vol. 51(12), pages 1763-1776, December.
    5. Jacob K. Goeree & Theo Offerman, 2003. "Competitive Bidding in Auctions with Private and Common Values," Economic Journal, Royal Economic Society, vol. 113(489), pages 598-613, July.
    6. Chonawee Supatgiat & John R. Birge & Rachel Q. Zhang, 2002. "Optimal Bidding Strategies in Non-Sealed Bid Online Auctions of Common Products with Quantity Uncertainty," Game Theory and Information 0211005, University Library of Munich, Germany, revised 05 Mar 2003.
    7. Amar Cheema & Dipankar Chakravarti & Atanu R. Sinha, 2012. "Bidding Behavior in Descending and Ascending Auctions," Marketing Science, INFORMS, vol. 31(5), pages 779-800, September.
    8. Adam, Marc T.P. & Krämer, Jan & Müller, Marius B., 2015. "Auction Fever! How Time Pressure and Social Competition Affect Bidders’ Arousal and Bids in Retail Auctions," Journal of Retailing, Elsevier, vol. 91(3), pages 468-485.
    9. Corchón, Luis C., 2008. "The theory of implementation : what did we learn?," UC3M Working papers. Economics we081207, Universidad Carlos III de Madrid. Departamento de Economía.
    10. Porter, David & Rassenti, Stephen & Shobe, William & Smith, Vernon & Winn, Abel, 2009. "The design, testing and implementation of Virginia's NOx allowance auction," Journal of Economic Behavior & Organization, Elsevier, vol. 69(2), pages 190-200, February.
    11. Rod Garratt & Thomas Tröger, 2006. "Speculation in Standard Auctions with Resale," Econometrica, Econometric Society, vol. 74(3), pages 753-769, May.
    12. Axel Ockenfels & David Reiley & Abdolkarim Sadrieh, 2006. "Online Auctions," NBER Working Papers 12785, National Bureau of Economic Research, Inc.
    13. Yoon, Kiho, 2008. "The participatory Vickrey-Clarke-Groves mechanism," Journal of Mathematical Economics, Elsevier, vol. 44(3-4), pages 324-336, February.
    14. Schilizzi, Steven & Latacz-Lohmann, Uwe, 2009. "Predicting the performance of conservation tenders when information on bidders's costs is limited," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48171, Australian Agricultural and Resource Economics Society.
    15. Dijkstra, Bouwe R. & Haan, Marco, 2001. "Sellers' Hedging Incentives at EPA's Emission Trading Auction," Journal of Environmental Economics and Management, Elsevier, vol. 41(3), pages 286-294, May.
    16. Chen, Yang & Park, Byungkwon & Kou, Xiao & Hu, Mengqi & Dong, Jin & Li, Fangxing & Amasyali, Kadir & Olama, Mohammed, 2020. "A comparison study on trading behavior and profit distribution in local energy transaction games," Applied Energy, Elsevier, vol. 280(C).
    17. Pinar Keskinocak & Shidhar Tayur, 2001. "Quantitative Analysis for Internet-Enabled Supply Chains," Interfaces, INFORMS, vol. 31(2), pages 70-89, April.
    18. Rachel R. Chen & Robin O. Roundy & Rachel Q. Zhang & Ganesh Janakiraman, 2005. "Efficient Auction Mechanisms for Supply Chain Procurement," Management Science, INFORMS, vol. 51(3), pages 467-482, March.
    19. Einy, Ezra & Haimanko, Ori & Orzach, Ram & Sela, Aner, 2002. "Dominance solvability of second-price auctions with differential information," Journal of Mathematical Economics, Elsevier, vol. 37(3), pages 247-258, May.
    20. Paul Klemperer, 2002. "What Really Matters in Auction Design," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 169-189, Winter.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:239:y:2019:i:c:p:133-141. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.