Simple day-ahead bidding algorithm for a system with microgrids and a distributor

In this paper we present a heuristic distributed algorithm for day-ahead bidding between collection of microgrids that sell their surplus energy to a power grid controller - distributor, who can use that energy with its consumers. Each microgrid is modeled as a node with consumers, energy generator (from renewable sources) and energy storage capabilities. For each time period, distributor negotiate amounts and prices with each microgrid separately, in rounds. Although both sides are modeled, we focus our research on the microgrid´s bidding algorithm for monetary gain from sold surplus energy. Presented algorithm is simple and produces good results from microgrid perspective. Due to model simplicity, produced results aren´t always optimal, and convergence had to be additionally helped. In comparison to similar distributed bidding algorithms for systems with storage capacity presented algorithm is simplest and can be used for day-ahead but with presented adaptations also for more complex microgrids and distributor, real-time adjustments and asynchronous negotiations.