A Novel Game Theory-based Participation Model of a Microgrid in a Competitive Electricity Market

In recent years, the ever-increasing electricity demand throughout the world along with the deficiencies related to large electric power systems have motivated researchers to take more attentions to practically efficient power generation alternatives such as distributed generations (DGs) based on renewable energies. This research investigates the operation of a microgrid with the aim of overall profit maximization for different players/participants in a competitive electricity market environment using game theory. The proposed microgrid consists of three main sections of generation, storage, and consumption with microturbines, wind turbines, batteries, electric vehicles, and residential loads. There is an electricity market pool for evaluation of market participants’ behavior and actions. The microgrid is able to buy/sell power from/to the upstream distribution network in different times within a 24-hr time horizon. Particle swarm optimization (PSO) algorithm is employed to optimize the final objective function considering different operational constraints in the problem.