A Novel Method for Energy Trading in Networked Microgrids Using Matching Theory

Abstract

This Paper proposes matching based energy trading mechanism among microgrids to trade energy flexibly in a networked distribution system. We consider an interconnected microgrid network system where some microgrids have an excess of power after their local utilization to sell, termed as sellers, whereas some other microgrids request additional power to meet demand. Energy trading is formulated as a matching problem where the sellers find suitable matches based on the sellers' preference matrix. The preference matrix is generated using the price proposed by the buyer microgrids. The buyer microgrids calculate the trading prices by considering the operational cost, virtual cost and generation cost, and the seller microgrids accept the proposal only if it's greater than the minimum trading price calculated by the seller. We also analyze that due to the power transfer between the microgrids instead of the utility grid., there is a reduction in power loss across the networked system during the power transfer We study the proposed theory on the distribution network containing different numbers of microgrids, and the numerical results are compared with the conventional energy trading methods to verify the effectiveness of the proposed approach. © 2022 IEEE.