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To accommodate the advent of microgrids (MG) managing distributed energyresources (DER) in distribution systems, an interactive two-stage joint retailelectricity market mechanism is proposed to provide an effective platform forthese prosumers to proactively join in retail transactions. Day-aheadstochastic energy trading between the distribution system operator (DSO) andMGs is conducted in the first stage of a centralized retail market, where achance-constrained uncertainty distribution locational marginal price(CC-UDLMP) containing the cost of uncertainty precautions is used to settletransactions. In the second stage, a novel intra-day peer-to-peer-based (P2P)flexibility transaction pattern is implemented between MGs in local flexibilitymarkets under the regulation of DSO to eliminate power imbalances caused byrolling-based estimates whilst considering systematic operations. A fullydistributed iterative algorithm is presented to find the equilibrium solutionof this two-stage sequential game framework. Moreover, in order to enhance theversatility of this algorithm, an improved Lp-box alternating direction methodsof multipliers (ADMM) algorithm is used to efficiently resolve the first-stagestochastic economic dispatch problem with a mixed-integer second-order conestructure. It is verified that the proposed market mechanism can effectivelyimprove the overall market efficiency under uncertainties.

A Novel Interactive Two-stage Joint Retail Electricity Market for Multiple Microgrids