A strategy for electricity trading among multiple microgrids considering bounded rationality

Abstract

Electricity trading among multiple microgrids often involves bounded rationality， manifested by varying preferences for losses， uncertainties， and short to long-term returns. This paper proposes a strategy for electricity trading among multiple microgrids considering bounded rationality， drawing on time preference theory and prospect theory. To maximize the revenue for all microgrids， their operators， taking a leading role， determine transaction prices to incentivize cooperative trading among microgrids. Microgrids， acting as followers， formulate a trading strategy while ensuring the maximization of their prospect values of time preference. A case analysis demonstrates that this strategy allows for the swift determination of transaction prices among microgrids， effectively enhancing overall microgrid revenue and the utilization rate of DG （distributed generation）.

Keywords

• multiple microgrids
• master-slave game
• bounded rationality
• uncertainty
• time preference theory
• prospect theory