TY - JOUR
T1 - Equilibrium Analysis of Electricity Markets with Microgrids Based on Distributed Algorithm
AU - Wang, Xian
AU - Zhang, Ying
AU - Zhang, Shaohua
AU - Li, Xue
AU - Wu, Lei
N1 - Publisher Copyright:
© 2013 IEEE.
PY - 2019
Y1 - 2019
N2 - Microgrid is an effective way to accommodate distributed renewable energy, and there is a need for microgrids to participate in electricity market competition to ensure its sustainable development. For this purpose, a market trading framework is presented where microgrids sell electricity by submitting bids in the distribution electricity market (DEM) while generators compete by submitting bids in the day-ahead wholesale market (DAWM). The retailers are considered to submit bids in the two markets to buy electricity to meet the demand of customers and an arbitrageur is introduced to buy and sell electricity between the DEM and the DAWM. Based on the market framework, a joint equilibrium model for the DEM and the DAWM is proposed. Moreover, the equilibrium problem is converted into a convex optimization problem, and the existence and uniqueness of Nash equilibrium for the DWAM and the DEM is theoretically demonstrated. Due to information asymmetry in practice, a distributed algorithm is applied to find equilibrium outcomes. Finally, numerical examples are presented to verify the effectiveness of the proposed model and algorithm.
AB - Microgrid is an effective way to accommodate distributed renewable energy, and there is a need for microgrids to participate in electricity market competition to ensure its sustainable development. For this purpose, a market trading framework is presented where microgrids sell electricity by submitting bids in the distribution electricity market (DEM) while generators compete by submitting bids in the day-ahead wholesale market (DAWM). The retailers are considered to submit bids in the two markets to buy electricity to meet the demand of customers and an arbitrageur is introduced to buy and sell electricity between the DEM and the DAWM. Based on the market framework, a joint equilibrium model for the DEM and the DAWM is proposed. Moreover, the equilibrium problem is converted into a convex optimization problem, and the existence and uniqueness of Nash equilibrium for the DWAM and the DEM is theoretically demonstrated. Due to information asymmetry in practice, a distributed algorithm is applied to find equilibrium outcomes. Finally, numerical examples are presented to verify the effectiveness of the proposed model and algorithm.
KW - Microgrid
KW - day-ahead wholesale market
KW - distributed algorithm
KW - distribution electricity market
KW - equilibrium model
UR - http://www.scopus.com/inward/record.url?scp=85081338616&partnerID=8YFLogxK
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U2 - 10.1109/ACCESS.2019.2936944
DO - 10.1109/ACCESS.2019.2936944
M3 - Article
AN - SCOPUS:85081338616
VL - 7
SP - 119823
EP - 119834
JO - IEEE Access
JF - IEEE Access
M1 - 8809767
ER -