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This paper proposes an energy market management framework to address the day-ahead optimization of a distribution network (DN) with a multi-microgrid (MMG). In this framework, an economic optimization based on a dynamic game is designed to ensure the reliability and stability of the DN operation while setting the internal transaction price to minimize the operation cost of the distribution network operator (DNO). The DNO, as a leader, sets the power flow constraints and microgrid operators (MGOs), as followers, respond to the internal transaction price and in turn affect the DNO’s price decision. The price incentive mechanism of the DNO is to encourage MGs to participate in energy market management, to promote joint operation of MGs and to reduce the operation cost of MGOs. The differential evolution algorithm and mixed integer programming method are applied to find the equilibrium solution to the dynamic game. Numerical simulations of a modified IEEE 33-bus system show the effectiveness of the proposed energy market management framework.

Energy Market Management for Distribution Network with a Multi-Microgrid System: A Dynamic Game Approach