Cooperative Microgrids for Smart Distribution Systems

This paper proposes a new energy management framework for a distribution system comprising of multiple interconnected microgrids. Microgrids are modelled as autonomous entities and they aim at optimizing their operating costs and gain benefits through energy trading. The energy trading scheme embodied in the framework enables microgrids with excess generation to trade their surplus with other microgrids that suffer from deficit, thereby alleviating their dependency on the utility grid. Within the coalition, buyer and seller microgrids are matched using a power loss reduction strategy. Various system intermittencies are modelled using the scenario generation and reduction processes. Results corroborate the effectiveness of the proposed cooperative framework in reducing network losses, energy costs and storage capacity requirements of the microgrids significantly, compared to the case where each microgrid operate individually only in coordination with the grid.