Multi-Agent-System-Based Bi-level Bidding Strategy of Microgrid with Game Theory in the Electricity Market

Abstract This paper focuses on multi-agent-system-based bi-level bidding strategy of microgrid to make all power producers participate in electricity allocation as rational agents under electricity market transaction. Firstly, the multi-agent-system-based bidding system is constructed as bi-level MAS. Then, the bidding model is formulated as a bi-level optimization problem, which makes the best of renewable energy source, and subjects it to the object of obtaining maximum profits for all power producers. According to this model, electricity market is divided into two subsidiary markets, which involve the upper and the lower electricity market. The lower electricity market is composed of microgrids, which ally together in the upper electricity market to offset their shortages compared to traditional power producers, such as efficient market influence, the reliability of the energy supplying. Additionally, game theory is introduced for modeling and Nash equilibrium as the solution of bidding optimization problem is found through a series of iterative process based on the bi-level MAS. Finally, both the upper market and the lower market are illustrated in the case studies and corresponding proper conclusions are received.