Impact of Microgrid Aggregator on Joint Energy and Reserve Market Based on Pure Strategy Nash Equilibrium

With the coordination of various distributed energy resources, microgrid has the capability to participate energy and reserve market simultaneously via a microgrid aggregator (MGA). The profit-maximizing offering problem of MGA satisfying a pure strategy Nash equilibrium (NE) is modelled in the paper as a bi-level programming to analyze the impact of MGA on the market equilibrium. A linearization method for pure strategy NE conditions is proposed, and then the bi-level problem is equivalently transformed into a mixed integer linear programming (MILP) based on Karush-Kuhn-Tucher (KKT) conditions and strong duality theorem. Numerical results demonstrate the effectiveness of proposed method and present market NE prices are influenced by the scalability and location of integrated MGA.