TY - GEN
T1 - Transactive Resilience in Renewable Microgrids
T2 - 56th Annual Conference on Information Sciences and Systems, CISS 2022
AU - Chen, Juntao
AU - Huang, Yunhan
AU - Zhu, Quanyan
N1 - Funding Information:
This work was supported in part by the National Science Foundation under Grant ECCS-2138956.
Publisher Copyright:
© 2022 IEEE.
PY - 2022
Y1 - 2022
N2 - Renewable energy-based microgrids play a critical role in future smart grids. Due to the uncertainties of renewable generations, the microgrids face potential risk of load shedding during operation. To address this problem, we propose a contract-based approach to enhance the resilience of microgrids. Specifically, in the framework, the microgrids who may not be self-efficient to meet their local demands can purchase the needed power from their connected microgrids by signing a contract that specifies the power price in advance. We leverage a principal-agent model to capture the energy trading relationships between the microgrids through a resilience as a service (RaaS) paradigm. By focusing on the incentive compatible and individual rational constraints of the service requester, the service provider designs the optimal contracts for the transactive resilience that yields the largest payoff despite the incomplete information. We characterize analytical solutions of the optimal contracts for several scenarios where the service requester has various options on its hidden actions. Numerical simulations are used to illustrate and corroborate the obtained results.
AB - Renewable energy-based microgrids play a critical role in future smart grids. Due to the uncertainties of renewable generations, the microgrids face potential risk of load shedding during operation. To address this problem, we propose a contract-based approach to enhance the resilience of microgrids. Specifically, in the framework, the microgrids who may not be self-efficient to meet their local demands can purchase the needed power from their connected microgrids by signing a contract that specifies the power price in advance. We leverage a principal-agent model to capture the energy trading relationships between the microgrids through a resilience as a service (RaaS) paradigm. By focusing on the incentive compatible and individual rational constraints of the service requester, the service provider designs the optimal contracts for the transactive resilience that yields the largest payoff despite the incomplete information. We characterize analytical solutions of the optimal contracts for several scenarios where the service requester has various options on its hidden actions. Numerical simulations are used to illustrate and corroborate the obtained results.
KW - Contract theory
KW - Micro-grid
KW - Renewable energy
KW - Transaction resilience
UR - http://www.scopus.com/inward/record.url?scp=85128765483&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85128765483&partnerID=8YFLogxK
U2 - 10.1109/CISS53076.2022.9751195
DO - 10.1109/CISS53076.2022.9751195
M3 - Conference contribution
AN - SCOPUS:85128765483
T3 - 2022 56th Annual Conference on Information Sciences and Systems, CISS 2022
SP - 230
EP - 235
BT - 2022 56th Annual Conference on Information Sciences and Systems, CISS 2022
PB - Institute of Electrical and Electronics Engineers Inc.
Y2 - 9 March 2022 through 11 March 2022
ER -