Design of coordination mechanisms for price anticipatory transactive microgrids

© 2020 The Institution of Engineering and Technology. In this study, coordination mechanisms are designed for price anticipatory transactive microgrids. The mechanismsare designed by considering the neighbourhood energy transactions among different consumers in a residential microgrid aswell as energy trading among several microgrids within an area. The energy trading framework among different consumers in amicrogrid is developed based on a non-cooperative leader-follower game theoretic approach to maximise the utilities of bothsellers and buyers. The energy transactions among different parties within a microgrid are defined, in this study, as intramicrogrid energy trading. A double-auction mechanism is used for energy trading among different microgrids where energyshortage and excess information from each microgrid are coordinated. The proposed mechanisms are developed byconsidering the physical properties of microgrids, e.g. power flow and voltage variations. The performance of the proposedmechanism is evaluated through the investigation of different properties, e.g. individual rationality of participants, budgetbalance, operational efficiencies in terms of cost saving, and optimality to achieve the grid independency.