Preference-based Energy Exchange in a Network of Microgrids

Abstract

Peer-to-peer (P2P) energy trade may disrupt conventional electricity markets in the future for a network of multiple microgrids and entitle an individual microgrid (MG) to trade energy with alternative options instead of the main grid. In this paper, driven by the P2P electricity maket, a preference mechanism is added to the conventional energy management model of a network of microgrids, and a distributed method of alternating direction method of multipliers (ADMM) is adopted for its implementation. The effect of the preference mechanism on the customized power flow in the network is further studied for significant case studies. Results show that the customized power flows on the network of interconnected MGs can be achieved with different preference values locally chosen or imposed by the system operator.