Energy management of micro-grid using cooperative game theory

Micro-grid (MG) has been introduced as a low voltage and a very small power system connected to a distribution grid through the point of common coupling. It consists of distributed energy resources (DERs) such as solar Photovoltaic (PV), wind turbine, fuel cell, etc.), interconnected load and energy storage sources. It can operate in grid-connected (i.e. when connected to the main grid) or islanded (i.e. when not connected to the main grid) mode. It has an advantage of utilizing low carbon sources and the possibility of its use in the remote local environment, which means that the transmission infrastructures and their associated costs may be deferred. Although there has been a proliferation of optimization methods of energy management in the MG, most of these methods consider self-interest of the players in profit distribution. Moreover, only a few of them consider a fair profit distribution using Nash bargaining solution (NBS) (i.e. when utility function is linear) leading to even profit distribution and high degree of dissatisfaction. For the MG to achieve better economic outcomes, a novel method based on weighted fair energy management among the participants (i.e. building of different types, such as residential buildings, schools, and shops) is proposed. The novelty of the proposed method lies in the new profit sharing method to favour certain participant by assigning a weight to each participant with cooperative game theory (CGT) approach using generalized Nash bargaining solution (GNBS). The proposed approach achieves a fair (reasonable or just) profit allocation with negotiating power indicator. In this work, a case study of six different participant sites is proposed using the CGT method of energy management. The proposed method is able to cope with the drawbacks of the existing independent method, which negotiate directly with other participants for selfish profit distribution. It is demonstrated that the independent method results in (1) a reduction in the profit of each participant of MG when ...