A Game-Theoretic Approach for Enabling Transactive Energy Frameworks among Networked Microgrids

Power distribution infrastructure is undergoing a major transformation towards a more secure, flexible and resilience network, and microgrids comprising distributed energy resources are believed to facilitate this goal. In this paper, we explore and develop a market mechanism to enable a transactive energy framework among microgrids to provide an alternative market operation strategy. Specifically, the proposed market framework enables peer-to-peer power trading among microgrids to offer the microgrids an alternative channel to sell their surplus power. The major benefit of promoting the proposed framework is to facilitate mutual support among microgrids during the main grid outage, thus enhance the overall resilience of the system. An optimization model based on equilibrium problem with equilibrium constraints framework has been developed to formulate the gameplay among various microgrid participates in the transactive energy market. In addition, we adopt the data from a real-world distribution system located in Medellin, Colombia to demonstrate the merits of proposed framework. The numerical studies indicate that the unserved energy index during main grid outage reduces by 85.6% if the proposed strategy is applied, which validates the value of the strategy in enhancing system resilience.