Bi-level Mixed-Integer Nonlinear Optimization for Pelagic Island Microgrid Group Energy Management Considering Uncertainty

To realize the safe, economical and low-carbon operation of the pelagic island microgrid group, this paper develops a bi-level energy management framework in a joint energy-reserve market where the microgrid group (MG) operator and renewable and storage aggregators (RSA) are independent stakeholders with their own interests. In the upper level, MG operator determines the optimal transaction prices with aggregators to minimize MG operation cost while ensuring all safety constraints are satisfied under uncertainty. In the lower level, aggregators utilize vessels for batteries swapping and transmission among islands in addition to energy arbitrage by participating in energy and reserve market to maximize their own revenue. An upper bound tightening iterative algorithm is proposed for the formulated problem with nonlinear terms and integer variables in the lower level to improve the efficiency and reduce the gap between upper bound and lower bound compared with existing reformulation and decomposition algorithm. Case studies validate the effectiveness of the proposed approach and demonstrate its advantage of the proposed approach in terms of optimality and computation efficiency, compared with other methods.