Bargaining-based energy trading market for interconnected microgrids

This paper studies the energy trading among multiple connected microgrids, and analyzes the impacts of such trading on the microgrids´ costs. In our model, microgrids with excessive power generations can trade with other microgrids in deficit of power supplies for mutual benefits. We design a bargaining-based energy trading market, where all the interconnected microgrids cooperatively decide the amount of energy trade and the associated payments. We propose a decentralized algorithm to solve the bargaining problem, with minimum information exchange overhead. Numerical studies based on realistic data demonstrate the effectiveness of the bargaining-based energy trading market design, and show that the reduction of total cost of the interconnected-microgrids system can be up to 22% comparing with the case of no trading.