Energy Management of Islanded Micro-Grid with Uncertainties Using Nash Bargaining Solution

Abstract: With the increasing integration of solar PV and wind energy in island micro-grids (MGs), the intermittent nature of non-dispatchable sources and the unpredictability of load demands are unavoidable. As a result, maintaining high reliability and system stability becomes a significant challenge. Additionally, demand-side management technologies and energy storage are commonly implemented in island MGs to mitigate the negative effects of RESs. However, these solutions also introduce uncertainties. Moreover, RESs in MGs are highly susceptible to external environmental factors such as solar radiation, temperature fluctuations, and wind speed variations, making it difficult to ensure system stability, particularly in islanded mode. To address these uncertainties, this paper considers six participant sites and proposes a Cooperative Game Theory (CGT) based on Nash Bargaining Solution (NBC) for collaboration among the participants of MG under the condition of uncertainties introduced by each participant. First energy transaction among the MG participants is modeled. Secondly, CGT using NBS is applied to model the uncertainties in dispatchable and non-dispatchable energy resources of the participants. Moreover, using NBS, a cooperative operation model among MG participants is established, which is transformed into profit maximization in cooperation, ensuring fair profit distribution and improves economic outcomes. The simulation results show that cooperation among all participants leads to an increase in their benefit values. Additionally, the findings suggest that the proposed model demonstrates strong economic performance.

Uncertainties, Nash Bargaining Solution, Micro-grid participants, Energy management system, Cooperative game theory, etc.

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