Modeling cooperation of multi-microgrids in smart distribution netowroks

In this paper, cooperation of several microgrids (MGs) in smart distribution networks is addressed. To investigate the behavior of MGs, a bi-level optimization model is presented. In the proposed bi-level model, MGs and distribution company (Disco) are considered as the leader and the followers, respectively. MGs decide about optimal scheduling of their resources and price offers to Disco for energy interactions with other MGs. In addition, Disco determines trading energy between MGs and energy transaction with wholesale electricity market as well. To obtain the equilibrium point, the Karush-Kahn-Tucker (KKT) conditions and dual theory are used to transform the proposed bi-level model to the equilibrium problem with equilibrium constraints (EPECs). In equilibrium point, the energy trading between MGs, energy trading with wholesale electricity market, and MGs' resources scheduling are determined. The proposed approach has been applied on a distribution grid with four MGs and the numerical results demonstrate the effectiveness of the proposed modeling framework.