A Real-Time Bargaining-Based Algorithm for Energy Trading Market in Smart Grid

Abstract

In this paper, an energy management problem of a distribution system is studied. The energy trading among a distribution company and some aggregators controlling flexible loads and electric vehicles is modeled as a large-scale Nash bargaining problem. A distributed approach is proposed using the alternating direction method of multipliers decomposition technique, to keep privacy of traders and reduce calculation complexities. We prove that the proposed method admits a Nash bargaining solution. Since the participants' information is not available beforehand, we design an MPC-based algorithm to overcome system uncertainties. To verify the proposed approach a numerical scenario has been simulated and the results show the efficiency of the proposed online method.