Price-Maker Bidding and Offering Strategies for Networked Microgrids in Day-Ahead Electricity Markets

This paper proposes a price-maker bidding and offering model for networked microgrids (NMG) in a pool-based day-ahead electricity market. The objective of this model is to maximize the net revenue of NMG by coordinating the joined individual microgrids to submit aggregated offers/bids to the market operator. A hybrid stochastic-robust optimization framework is developed to offset multiple associated uncertainties. The bidding and offering model is first formulated as a hard-to-solve mixed-integer nonlinear programming (MINLP) problem, which is later converted to its easy-to-solve mixed-integer linear programming (MILP) counterpart. To resolve privacy concerns of each microgrid and improve the scalability of the proposed bidding and offering model, a coordinated scheduling framework for NMG based on the Dantzig-Wolfe decomposition (DWD) method is proposed to obtain the global optimum. Numerical simulations with real-world measured data validate the effectiveness of the proposed price-maker bidding model, which is shown to outperform existing price-taker models.

Automated summary

This paper introduces a price-maker bidding and offering model for networked microgrids in a day-ahead electricity market, aiming to maximize net revenue by coordinating individual microgrids. A hybrid optimization framework is used to account for uncertainties, with numerical simulations demonstrating the model's superiority over existing approaches.