Multi-agent systems in networked microgrids: Reinforcement learning and strategic pricing mechanisms

This study presents a novel, multi-layered approach for optimizing power transactions in networked microgrids using a multi-agent system framework. It incorporates peer-to-peer trading within microgrid clusters and a market based mechanism for inter-microgrid cluster transactions. To facilitate trading efficiency and market coordination, microgrids are first grouped into clusters based on similar load profiles and generation characteristics, enabling efficient intra-microgrid cluster energy balancing before engaging in inter-microgrid cluster trading. Within each microgrid cluster, microgrids operate autonomously, using local optimization to assess power surpluses and shortages, followed by multi-agent reinforcement learning to dynamically determine bid/ask prices. The proposed framework integrates a two-tiered trading mechanism. First, intra-microgrid cluster trading is facilitated through a proportional bargaining pricing model, ensuring fair power distribution among microgrids within the same microgrid cluster. Then, inter-microgrid cluster trading is optimized using a system marginal pricing mechanism, allowing microgrid clusters to efficiently sell surplus and buy shortage while minimizing grid dependency. Simulations using real-world data demonstrate substantial cost reductions and improved market efficiency. The proposed approach achieves a reduction of 43.9% in the annual surplus energy sold to the grid which reduces reliance on the utility grid by 7.1%. Additionally, annual electricity purchase costs from the grid and the cost of selling electricity to the grid are decreased by 7.5% and 44.6%, respectively. These improvements contribute to greater energy self-sufficiency, lower transaction costs, and enhanced economic fairness among microgrids. This framework provides a scalable, effective, and market-driven solution for power trading in networked microgrids by integrating microgrid clustering, local optimization, dynamic bid/ask price learning, and decentralized trading mechanisms. This improves operational resilience and economic viability of future distributed power markets.

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Publication Details

Journal
Renewable Energy
Published
2025-06-13
DOI
https://doi.org/10.1016/j.renene.2025.123678
Citations
11
Primary Topic
Smart Grid Energy Management
Type
article
Field-Weighted Citation Impact
8.03

Funders

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article

Multi-agent systems in networked microgrids: Reinforcement learning and strategic pricing mechanisms

Syed Muhammad Ahsan, Nastaran Gholizadeh, Petr Musı́lek
11 citations
Renewable Energy
Smart Grid Energy Management
8.03
article

Multi-agent systems in networked microgrids: Reinforcement learning and strategic pricing mechanisms

Syed Muhammad Ahsan, Nastaran Gholizadeh, Petr Musı́lek
article en
11 citations

Abstract

This study presents a novel, multi-layered approach for optimizing power transactions in networked microgrids using a multi-agent system framework. It incorporates peer-to-peer trading within microgrid clusters and a market based mechanism for inter-microgrid cluster transactions. To facilitate trading efficiency and market coordination, microgrids are first grouped into clusters based on similar load profiles and generation characteristics, enabling efficient intra-microgrid cluster energy balancing before engaging in inter-microgrid cluster trading. Within each microgrid cluster, microgrids operate autonomously, using local optimization to assess power surpluses and shortages, followed by multi-agent reinforcement learning to dynamically determine bid/ask prices. The proposed framework integrates a two-tiered trading mechanism. First, intra-microgrid cluster trading is facilitated through a proportional bargaining pricing model, ensuring fair power distribution among microgrids within the same microgrid cluster. Then, inter-microgrid cluster trading is optimized using a system marginal pricing mechanism, allowing microgrid clusters to efficiently sell surplus and buy shortage while minimizing grid dependency. Simulations using real-world data demonstrate substantial cost reductions and improved market efficiency. The proposed approach achieves a reduction of 43.9% in the annual surplus energy sold to the grid which reduces reliance on the utility grid by 7.1%. Additionally, annual electricity purchase costs from the grid and the cost of selling electricity to the grid are decreased by 7.5% and 44.6%, respectively. These improvements contribute to greater energy self-sufficiency, lower transaction costs, and enhanced economic fairness among microgrids. This framework provides a scalable, effective, and market-driven solution for power trading in networked microgrids by integrating microgrid clustering, local optimization, dynamic bid/ask price learning, and decentralized trading mechanisms. This improves operational resilience and economic viability of future distributed power markets.

Renewable EnergyVol. 254
University of Alberta (CA), University of Hradec Králové (CZ)
Government of Alberta, Natural Sciences and Engineering Research Council of Canada
Openalex Percentile: Top 2%
Smart Grid Energy Management
8.03
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