IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v324y2025ics0360544225015841.html

Distributed mix-integer game approach for local energy trading among multi-energy microgrids via best response method

Author

Listed:
  • Huang, Junjie
  • Yu, Tao
  • Pan, Zhenning
  • Wu, Yufeng

Abstract

The participation of multi-energy microgrids (MEMGs) in energy market trading offers a promising solution for fully utilizing distributed and public energy resources. Besides, the energy market trading game analysis is an important approach to encourage energy co-construction and sharing among prosumers. Existing research faces issues such as unrealistic model simplifications, heavy computational burdens, and difficulties in proving game-related properties. This paper proposes a model for the electricity-natural gas joint trading game (EGJTG) based on mixed-integer Nash equilibrium problem (MI-NEP) and its distributed approach based on best-response (BR) method to address these shortcomings. Specifically, the paper examines how electric-gas coupled MEMGs can determine the flow of natural gas and participate in trading games in both local electricity and gas markets. Under certain conditions, the paper proves the existence and uniqueness of equilibrium for the EGJTG. The convergence of the distributed game approach built on BR method is analyzed and the MI-NE is determined. Case studies demonstrate that the approach converges rapidly in the EGJTG with quadratic objectives and constraints, and the joint analysis of NEP problems with relaxed integer variables forms mutual verification.

Suggested Citation

  • Huang, Junjie & Yu, Tao & Pan, Zhenning & Wu, Yufeng, 2025. "Distributed mix-integer game approach for local energy trading among multi-energy microgrids via best response method," Energy, Elsevier, vol. 324(C).
    • Handle: RePEc:eee:energy:v:324:y:2025:i:c:s0360544225015841
    DOI: 10.1016/j.energy.2025.135942
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544225015841
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2025.135942?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

    for a different version of it.

    References listed on IDEAS

    as
    1. 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).
    2. Erol, Özge & Başaran Filik, Ümmühan, 2022. "A Stackelberg game approach for energy sharing management of a microgrid providing flexibility to entities," Applied Energy, Elsevier, vol. 316(C).
    3. 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).
    4. Masoumzadeh, Amin & Alpcan, Tansu & Nekouei, Ehsan, 2020. "Designing tax and subsidy incentives towards a green and reliable electricity market," Energy, Elsevier, vol. 195(C).
    5. Bloess, Andreas & Schill, Wolf-Peter & Zerrahn, Alexander, 2018. "Power-to-heat for renewable energy integration: A review of technologies, modeling approaches, and flexibility potentials," Applied Energy, Elsevier, vol. 212(C), pages 1611-1626.
    6. Olabi, A.G. & Onumaegbu, C. & Wilberforce, Tabbi & Ramadan, Mohamad & Abdelkareem, Mohammad Ali & Al – Alami, Abdul Hai, 2021. "Critical review of energy storage systems," Energy, Elsevier, vol. 214(C).
    7. 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).
    8. Rodrigues, Stefane Dias & Garcia, Vinicius Jacques, 2023. "Transactive energy in microgrid communities: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    9. Nasiri, Nima & Zeynali, Saeed & Ravadanegh, Sajad Najafi & Marzband, Mousa, 2021. "A hybrid robust-stochastic approach for strategic scheduling of a multi-energy system as a price-maker player in day-ahead wholesale market," Energy, Elsevier, vol. 235(C).
    10. Poullikkas, Andreas, 2005. "An overview of current and future sustainable gas turbine technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 9(5), pages 409-443, October.
    11. Liu, Zhiyuan & Yu, Hang & Liu, Rui, 2019. "A novel energy supply and demand matching model in park integrated energy system," Energy, Elsevier, vol. 176(C), pages 1007-1019.
    12. Wang, Lu & Gu, Wei & Wu, Zhi & Qiu, Haifeng & Pan, Guangsheng, 2020. "Non-cooperative game-based multilateral contract transactions in power-heating integrated systems," Applied Energy, Elsevier, vol. 268(C).
    13. Blaise Allaz & Jean-Luc Vila, 1993. "Cournot Competition, Forward Markets and Efficiency," Post-Print hal-00511806, HAL.
    14. Zare Oskouei, Morteza & Mirzaei, Mohammad Amin & Mohammadi-Ivatloo, Behnam & Shafiee, Mahmood & Marzband, Mousa & Anvari-Moghaddam, Amjad, 2021. "A hybrid robust-stochastic approach to evaluate the profit of a multi-energy retailer in tri-layer energy markets," Energy, Elsevier, vol. 214(C).
    15. Abdul Ghani Olabi & Tabbi Wilberforce & Mohammad Ali Abdelkareem & Mohamad Ramadan, 2021. "Critical Review of Flywheel Energy Storage System," Energies, MDPI, vol. 14(8), pages 1-33, April.
    16. Philip J. Heptonstall & Robert J. K. Gross, 2021. "A systematic review of the costs and impacts of integrating variable renewables into power grids," Nature Energy, Nature, vol. 6(1), pages 72-83, January.
    Full references (including those not matched with items on IDEAS)

    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. Hadi, Mojtaba & Elbouchikhi, Elhoussin & Zhou, Zhibin & Saim, Abdelhakim, 2026. "Optimal energy management in multi energy microgrid with combined heat and power system and demand side response integration," Renewable Energy, Elsevier, vol. 256(PE).
    2. 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).
    3. Sasidhar, Punyam Rajendran Sai & Gebremedhin, Alemayehu & Norheim, Ian, 2025. "Multi-energy microgrid design and the role of coupling components—A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 216(C).
    4. Cheayb, Mohamad & Marin Gallego, Mylène & Tazerout, Mohand & Poncet, Sébastien, 2022. "A techno-economic analysis of small-scale trigenerative compressed air energy storage system," Energy, Elsevier, vol. 239(PA).
    5. Jānis Krūmiņš & Māris Kļaviņš, 2023. "Investigating the Potential of Nuclear Energy in Achieving a Carbon-Free Energy Future," Energies, MDPI, vol. 16(9), pages 1-31, April.
    6. Ahmadi, Seyed Ehsan & Sadeghi, Delnia & Marzband, Mousa & Abusorrah, Abdullah & Sedraoui, Khaled, 2022. "Decentralized bi-level stochastic optimization approach for multi-agent multi-energy networked micro-grids with multi-energy storage technologies," Energy, Elsevier, vol. 245(C).
    7. Ai, Wei & Wang, Liang & Lin, Xipeng & Bai, Yakai & Huang, Jingjian & Hu, Jiexiang & Chen, Haisheng, 2024. "Dynamic characteristics of pumped thermal-liquid air energy storage system: Modeling, analysis, and optimization," Energy, Elsevier, vol. 313(C).
    8. Ameen, Muhammad Tahir & Ma, Zhiwei & Smallbone, Andrew & Norman, Rose & Roskilly, Anthony Paul, 2023. "Demonstration system of pumped heat energy storage (PHES) and its round-trip efficiency," Applied Energy, Elsevier, vol. 333(C).
    9. Li, Chengchen & Wang, Huanran & He, Xin & Zhang, Yan, 2022. "Experimental and thermodynamic investigation on isothermal performance of large-scaled liquid piston," Energy, Elsevier, vol. 249(C).
    10. Dzido, Aleksandra & Krawczyk, Piotr & Wołowicz, Marcin & Badyda, Krzysztof, 2022. "Comparison of advanced air liquefaction systems in Liquid Air Energy Storage applications," Renewable Energy, Elsevier, vol. 184(C), pages 727-739.
    11. Toufani, Parinaz & Nadar, Emre & Kocaman, Ayse Selin, 2022. "Short-term assessment of pumped hydro energy storage configurations: Up, down, or closed?," Renewable Energy, Elsevier, vol. 201(P1), pages 1086-1095.
    12. Herc, Luka & Pfeifer, Antun & Duić, Neven & Wang, Fei, 2022. "Economic viability of flexibility options for smart energy systems with high penetration of renewable energy," Energy, Elsevier, vol. 252(C).
    13. Liu, Mingyi & Qian, Feng & Mi, Jia & Zuo, Lei, 2022. "Biomechanical energy harvesting for wearable and mobile devices: State-of-the-art and future directions," Applied Energy, Elsevier, vol. 321(C).
    14. Savolainen, Rebecka & Lahdelma, Risto, 2022. "Optimization of renewable energy for buildings with energy storages and 15-minute power balance," Energy, Elsevier, vol. 243(C).
    15. Karaca, Ali Erdogan & Dincer, Ibrahim & Nitefor, Michael, 2023. "A new renewable energy system integrated with compressed air energy storage and multistage desalination," Energy, Elsevier, vol. 268(C).
    16. Stevanovic, Vladimir D. & Nord, Lars O. & Lazarevic, Milos A. & Milivojevic, Sanja & Petrovic, Milan M. & Stevanovic, Nevena, 2025. "Carnot battery with steam accumulator and pebble bed thermal energy storage," Energy, Elsevier, vol. 329(C).
    17. Lopez-Ruiz, G. & Alava, I. & Blanco, J.M., 2021. "Study on the feasibility of the micromix combustion principle in low NOx H2 burners for domestic and industrial boilers: A numerical approach," Energy, Elsevier, vol. 236(C).
    18. Zhiwen Hu & Hanyi Wang, 2025. "A Study on the Optimal Design of Subsurface Pumping Energy Storage Under Varying Reservoir Conditions," Energies, MDPI, vol. 18(19), pages 1-27, October.
    19. Zwickl-Bernhard, Sebastian & Oitzinger, Maximilian & Fischer, Helen Anais & Backe, Stian, 2025. "Strategic solar module stockpiling in the EU: A scenario-based analysis of costs and benefits beyond 2030," Energy Policy, Elsevier, vol. 203(C).
    20. Wang, Zhiqiang & Liu, Xiao & Gu, Wu & Cheng, Lei & Wang, Hui & Liu, Jiaqi & Li, Luling & Wang, Jinhua & Zhang, Meng & Wang, Yongzhi & Shen, Yang, 2026. "Power-to-Hydrogen-to-Power as a pathway for wind and solar renewable energy utilization in China: Opportunities and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 226(PA).

    More about this item

    Statistics

    Access and download statistics

    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:energy:v:324:y:2025:i:c:s0360544225015841. 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.journals.elsevier.com/energy .

    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.