Decentralized Peer-to-Peer Energy Trading Model for Networked Microgrids

Abstract

Energy trading among networked microgrids can be an effective tool to achieve reliability and economic benefits. This paper proposes a two stage Peer-to-Peer (P2P) energy trading model consisting of a local scheduling optimization problem in stage one and an energy trading price adjustment mechanism in stage two. In this study, it was assumed that all networked microgrids are connected to the utility grid and to each other. However, the amount of power that can be exchanged with the utility grid is limited by the tie-line maximum capacity; hence, the trading scheme is developed for energy trading between the networked microgrids to satisfy their deficit and surplus power that cannot be exchanged with the utility grid due to tie-line limit. Simulation is conducted to validate the proposed model using a 24-hour forecasted net load data for seven networked microgrids.