A decentralized operating model for a multi-microgrid system including private microgrids by using an auction-based day-ahead market framework

Microgrids (MGs) with private owners are independent entities that are managed autonomously based on their operation strategies. They can interact with the neighboring MGs and upstream network (UN) in the day-ahead energy markets, to schedule their resources optimally. In this regard, this research proposes a decentralized operating model including an auction-based day-ahead market framework for a multi-microgrid system (MMS) with private MGs. The proposed market framework includes two parts. To deal with the limitation of MMS's power exchange with UN due to considering the economic aspect of UN, the first part determines the power exchange of each MG with UN based on the price and maximum power exchange dictated by UN. The second part is based on the double auction mechanism that enables MGs to exchange power with each other. According to the price and the limitation of power exchange with UN and in the auction, each MG schedules its resources and decides to purchase/ sell the power for each hour of the next day. Meantime each MG determines purchase/ sale prices based on consideration of its local objectives to participate in the auction. Numerical results show that the proposed framework improves the economic performance of MGs by providing suitable conditions for MGs' power exchange with each other and UN.