Nash Bargaining Based Active and Reactive Energy Trading Method for Microgrids in Distribution Network

Abstract

In this paper, the problem of microgrid group participating in active and reactive power trading on the distribution side is studied. A Nash bargaining model based on cooperative game theory is proposed for the transaction between microgrid operators (MGO) and distribution network operator (DNO). Taking the optimal operating cost of direct transaction between MGO and DNO as the disagreement point of Nash bargaining. The solution of Nash equilibrium is obtained. Finally, a case study is given to verify the effectiveness of the proposed method in solving the economic dispatching problem of active power and reactive power.