Privacy constrained energy management for self-interested microgrids

This paper studies the energy management problem for two self-interested microgrids with integrated renewable energy and energy storage systems, which can exchange energy with each other through the transmission line connecting them. Microgrids are willing to cooperate if and only if both can benefit from the energy cooperation, e.g. achieve lower energy costs as compared to the without energy cooperation case, while sharing limited information due to privacy considerations. We thus propose an iterative algorithm for the partially cooperative energy management problem, which aims to reduce energy costs of both microgrids simultaneously, while sharing limited information. To provide performance benchmark, we also consider the fully cooperative energy management problem, for which we ideally assume that microgrids share all their information to minimize their total energy cost. Last, we evaluate our proposed algorithms for the partially and fully cooperative energy management via simulations based on the Tucson power system data.