Incentive based efficient energy trading mechanism in micro-grids

Abstract

To satisfy growing demand for higher energy efficiency, reduced greenhouse emissions, and im-proved power quality and reliability, a new concept of next generation electric power grid is envisioned to be a smart grid architecture. Moreover, to manage and operate such a complex infrastructure more efficiently, micro-grids which are composed of building block have emerged as a promising platform. In micro-grids, to alleviating overload on the main grid, the micro-grids should supply energy to their geographical areas without reliance on the main grid. However, because the generation of renewable energy sources used in micro-grids is generally unstable in terms of energy generation, it is difficult to balance energy generation by renewable sources and local demands while at the same time fully utility the capacity of renewable energy sources. Therefore, when some micro-grids have a superfluous energy while others require more energy, it is beneficial for trading energy each other. In this sense, energy trading in micro-grids is considered as a promising mecha-nism. In this thesis, we propose an incentive based efficient energy trading mechanism among micro-grids. In order to do that, at a given time interval, each micro-grids can be an energy provider or a consumer depending on the status of generation or demand of energy. Under the trading mechanism, there is a distributer who gathers the superfluous energy from providers and distributes it to their consumers based on their historical incentive. Before start to trade energy each other, the distributer decide on the incentive scheme and notify it to providers depending on the difference between superfluous energy and required energy. Based on this incentive scheme, provider decides on how much superfluous energy will trade to distributer while others store in their energy storage system to maximize their satisfaction. We show that efficient energy trading ratio based on well-defined utility function. Moreover, we compare proposed scheme with conventional price based scheme in terms of energy trading ratio and based on efficient energy trading ratio, we analysis normalized main-grid energy supply to evaluate main-grid overhead. Numerical results show that proposed scheme reduce normalized main-grid energy supply maximum 60% compared to the conventional price based energy trading scheme in energy shortage case.