Distributed Iterative Local Energy Bidding in Agent-based Microgrids

Abstract

This paper designs a new distributed iterative bidding mechanism for energy trading among microgrids (MGs) at the local level. The market is based on one consumer and multiple providers. When one MG as a consumer and other MGs which have surplus power to supply becomes providers. The providers compete by iterative bidding cycles and the final winner will trade with the consumer MG. Due to the non-cooperative relationship among providers, players cannot access other’s information except the feedback from the system operator. This asymmetric information competition among providers is formulated by a Bayesian game for analysis. The Bayesian Nash Equilibrium (BNE) will be arrived and the optimal price can be provided to the consumer. The simulation demonstrates that although different bidding strategies lead to different process, the final result remains, illustrating the effectiveness of this trading model. I.