A Cooperative Model for Microgrids Based on Interbank Lending Method

Abstract

To increase the microgrid’s (MG) profit and decrease the MG’s power loss, the cooperation between MGs has been studied. But there is lack of a specific mechanism for determining how to distribute alliance’s total profit to different MGs and an impact on balancing market’s cost. Hence, this paper firstly confirmed the electricity market mechanism. Then, established a model of direct transaction between MGs and main grid (DTMM) and proposed a model of cooperative transaction between MGs (CTM) based on interbank lending method. Finally, the paper used chronological simulation method to simulate the models proposed on MATLAB. Results showed that all MGs’ profit increased by 359160 € and the balancing market’s cost decreased by 91% in CTM compared with DTMM.