A Centralized Smart Decision-Making Hierarchical Interactive Architecture for Multiple Home Microgrids in Retail Electricity Market

The principal aim of this study is to devise a combined market operator and a distribution network operator structure for multiple home-microgrids (MH-MGs) connected to an upstream grid. Here, there are three distinct types of players with opposite intentions that can participate as a consumer and/or prosumer (as a buyer or seller) in the market. All players that are price makers can compete with each other to obtain much more possible profitability while consumers aim to minimize the market-clearing price. For modeling the interactions among partakers and implementing this comprehensive structure, a multi-objective function problem is solved by using a static, non-cooperative game theory. The propounded structure is a hierarchical bi-level controller, and its accomplishment in the optimal control of MH-MGs with distributed energy resources has been evaluated. The outcome of this algorithm provides the best and most suitable power allocation among different players in the market while satisfying each player’s goals. Furthermore, the amount of profit gained by each player is ascertained. Simulation results demonstrate 169% increase in the total payoff compared to the imperialist competition algorithm. This percentage proves the effectiveness, extensibility and flexibility of the presented approach in encouraging participants to join the market and boost their profits.