Stochastic electricity market model in networked microgrids considering demand response programs and renewable energy sources

In this paper, a cooperative market mechanism is proposed to define the energy transactions and market price in multi-microgrids (MMGs). The proposed model can be used for both the grid-connected and isolated MMG as well as models with several MG owners. We use a cooperative approach that guarantees the existence of the optimal solution, while the Nash equilibrium points cannot ensure the Pareto optimality of the solution in the competitive approaches. Microgrids (MGs) send their bids/offers to the market operator, and the devoted energy will be announced to MGs in order to set the production of their resources. Various energy production units such as renewable energy resources (Photovoltaic, and wind), dispatchable energy resources, Energy Storage Systems (ESS), and demand response program have been taken into account. Moreover, an incentive-based demand response program motivates the consumers to take part in the market and benefit from the deployed market. Scenario generation and reduction methods are used to consider various uncertainties in the power system. The proposed model is formulated as a Mixed Integer Linear Programming (MILP) and solved by GAMS software. Several case studies are tested and the simulation results show the efficiency of the proposed model.