Two stage market model in microgrid using cooperative game theory

Abstract

For microgrids with renewable energy sources, the main goal is to optimize the energy usage in a particular area based on the prediction of energy consumption and production. However, prediction error cannot be evaded and it causes various problems to operate microgrid system. To solve these problems, we are going to propose two-stage energy operation model in a local microgrid system. In addition, by applying cooperative game theory with the Shapley-value algorithm, revenue and payment are determined in real-time period based on the actual contribution of individual prosumer. Numerical anaylsis shows that our suggested approach can reduce peak load more than 16% and reduce the total charge over 5% compared with the case of non-cooperative energy market.