This paper proposes a peer-to-peer trading optimization method for a microgrid (MG) system on the island. A bargaining game is applied to describe the trading and operating strategies for two MGs in the off-grid MG system under the regulation of the government. First, the peer-to-peer trading optimization models for both MGs are developed. The electricity price is negotiated by MGs in an interval limited by the government. The trading power between MGs is optimized coordinately to minimize the net cost of each MG. Second, the presented optimization models are linearized and transformed to solve the Pareto front of trading and operating schemes for both MGs. Finally, the effectiveness of the proposed method is verified in the case studies. A sensitivity analysis of pricing intervals is also implemented to reveal the influence of the government’s regulation on the net cost of MG.

Bargaining game,electricity price,microgrid system,operation,peer-to-peer trading