Game on Pricing of a Micro Grid Based on Multi-agent System Considering New Energy Consumption

Abstract

Based on the analysis of the characteristics of micro grid, we established a micro grid power market with the multi-agent theory to mode the interaction between micro grid and large grid. Then the Nash game theory was used to analyze the bidding strategy of micro grid considering a power market with imperfect competition. We found that the bidding strategy with high proportion factor and low cost quotation of micro grid can maximize the system’s profit. Although the change of any micro grid’s bidding strategy will lead to the adjustment of bidding strategy of other micro grids, the system will eventually achieve Nash equilibrium. Finally, we obtained the optimal bidding strategy and selection scheme of micro grid to maximize the micro grid’s profit through numerical analysis. Introduction Smart grid is considered as the next-generation power network. Its most important aim is to improve the energy efficiency, quality and reliability of the power system. It is also the inevitable result of the innovation and sustainable development of distributed generation and energy storage, advanced power electronics and modern communication technologies [1] . In order to efficiently and reliably manage and operate such an important and complex architecture, the micro grid (MG), as the most important component of smart grid, can integrate and coordinate the distributed MG through the distributed energy resource management platform. Distributed generation (DG) is that the power generation facilities placed directly in the distribution network or distributed near the load, generating electricity economically, efficiently and reliably [2] . Power generation facilities in the distributed generation system are called as distributed power sources including wind power generation, solar power generation, fuel cells, and micro gas turbines, et al. These power supplies usually have a small power generation (typically less than 50 MW) and are close to the user. They can generally supply power directly to nearby loads or output power to the grid as needed. This is called as distributed energy resources(DER) [3] . The efficient introduction of MG faces numerous challenges on many fronts such as design, control, and implementation [4] . Although many programs have been made in the MG generation technology, electricity trades among MGs have received limited attention [5] . In recent years, smart grid pricing related to electricity trades has always been a very important topic. In this field, some researches focused on demand-side management [6-8] . Also, some research studied the pricing mechanism of power market with different bidding models [9-11] . Consider the rapid development of MG technology, microeconomic analysis on power pricing considering a finite number of agents in the power market is important for the success of MG. In this paper, we construct a multi-agent system based power trading market with micro-grid, and investigate the optimal bidding strategy for micro grid with Nash game theory. At the same time, we exploit the bidding mechanism and income according to the market clearing bidding principle.