An innovative real-time price based distributed optimal energy management of multi-microgrids in a smart distribution system

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Abstract
This paper propose a novel distributed optimal energy management algorithm for a smart distribution system (SDM) with multiple microgrids in real-time electricity price market. Due to the microgrids belong to different owners and thus they should be considered as distinct entities with individual objectives. The centralized energy management system (EMS) cannot deal with this problem and may infringe customer's privacy. Each microgrid has energy storage units, responsive loads, controllable distributed generation units, and renewable energy resources. In order to achieve the equilibrium among microgrids and satisfy the power capacity constraints of the distribution network, we formulate a sequential non-corporative games model based distributed energy management algorithm to coordinate the operation of the microgrids. A finite mixed integer quadratic programming (MIQP) model is formulated to solve this problem. Case study is implemented and the simulation results show that our method is flexible and efficient.

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