Energy Sharing for Interconnected Microgrids with a Battery Storage System and Renewable Energy Sources Based on the Alternating Direction Method of Multipliers

Abstract

In order to facilitate the local sharing of renewable energy, an energy sharing management method of multiple microgrids (MGs) with a battery energy storage system (BESS) and renewable energy sources (RESs) is developed. First, a virtual entity named the energy sharing provider (ESP), which acts as an agent for MGs, is introduced to minimize the power loss cost. Second, a distributed optimal model and a two-level iterative algorithm for the MGs and ESP are proposed, which minimize the total operation cost including purchasing electricity cost, energy storage cost and power loss cost. Based on the energy sharing framework, considering the local objectives of MGs and the objective of ESP, the optimal scheduling can be achieved through the bidirectional interaction between MGs and ESP. During the optimization, the shared information between MGs and ESP is limited to expected exchange power, which protects the privacy of MGs and ESP. Finally, the effectiveness of the proposed model and algorithm in different scenarios is verified through a case study.