Abstract
Power sharing can improve the benefit of the multi-microgrid (MMG) system. However, the information disclosure may appear during the sharing process, which would bring privacy risk to a local microgrid. Actually, the risk and coordination cost are different in different sharing modes. Therefore, this paper develops a decision-making method to decide the most suitable one of three mostly used sharing modes (i.e., cooperative game with complete information, cooperative game with incomplete information, and noncooperative game). Firstly, power sharing paradigms and coordination mechanisms in the three modes are formulated in detail. Particularly, different economic operation models of MMG system are included to analyze the economic benefit from different sharing modes. Based on the different disclosed information, the risk cost is evaluated by using the simplified fuzzy analytic hierarchy process (FAHP). And the coordination cost for different sharing modes is expressed in different functions. In addition, a hierarchical evaluation system including three decision-making factors (e.g., economics, risk, and coordination) is set up. Meanwhile, a combination weighting method (e.g., the simplified FAHP combined with the anti-entropy weight method) is applied to obtain the weight of each factor for comprehensive evaluation. Finally, the optimal sharing solution of MMG system is decided by comparing and analyzing the difference among the three sharing modes. Numerical results validate that the proposed method can provide a reference to deciding a suitable sharing mode.
i, j Indices of microgrids (MGs)
k Index of power sharing modes
m, n Indices of decision-making factors
p, q Indices of risk evaluation criterions
t Index of time periods
kBT, kWT, kPV Operating cost coefficients of battery (BT), wind turbine (WT), and photovoltaic (PV) system
β Equivalent pollutant emission factor related to the purchasing power from main grid
Pollution emission price
, Electricity purchasing and selling prices from/to main grid
The maximum exchanged power with main grid
The maximum exchanged power between MGs
, Lower and upper bounds of biding price of MG i
, Lower and upper bounds of biding power of MG i
Coordination coefficients of three sharing modes
, Purchasing and selling prices of power from/to other MGs in the
Bidding price of MG i in the
Clearing price of MG i in the
Exchanged power contribution of MG i
, Power of WT and PV of MG i in the
, Purchasing and selling power of MG i from/to main grid in the
, Purchasing and selling power of MG i from/to
other MGs in the
Load demand of MG i in the
, Charging and discharging power of BT of MG i in the
, Actual purchasing and selling power of MG i
from/to other MGs in the
, Actual purchasing and selling power of MG i
from/to main grid in the
Clearing power of MG i in the
Exchanged power of MG i in the
Supply-demand ratio in the
Total power supply and demand of multi-microgrid (MMG) system in the
, States of purchasing and selling power from/to main grid of MG i in the
, States of purchasing and selling power from/to
other MGs of MG i in the
MICROGRID (MG) is a small and controllable power grid that integrates distributed generations (e.g., wind and solar generation), loads, and energy storage devices [
Multiple interconnected MGs can exchange power with each other to balance local demands and make full use of excessive renewables by forming a multi-MG (MMG) system [
To decrease the privacy risk, hierarchical energy management mode based on the cooperative game with incomplete information has been explored in many studies [
Different from the previous two modes, participants are considered as price-makers in the sharing mode with the noncooperative game [
Among the above mentioned three modes, most studies are willing to employ the first mode (e.g., cooperative game with complete information) since it is relatively easy to design and implement. But the second mode (e.g., cooperative game with incomplete information) is relatively secure in privacy-preserving and relatively independent for each participant in decision-making process. Besides, independent entities in the third mode (e.g., noncooperative game) were provided by full decision-making authorities to influence the market price by making bidding strategies including trading quantities and price. Actually, it is hard to identify which power sharing mode is the most suitable when applied into real-world scenarios due to the existence of many influence factors (e.g., economic benefits, risk, etc.). Most of the existing studies only focus on the expected benefits under given sharing modes. Few studies explore decision-making methods to obtain the most suitable sharing mode. Based on the foregoing discussion, this paper pays attention to three decision-making factors that affect performance of sharing modes, which are economics (related to expected benefits), risk (related to privacy-preserving), and coordination (related to management mode). The key to deciding a sharing mode lies in the construction of comprehensive evaluation system, where the weight choice is the core problem [
Thus, this paper develops a general method to decide the optimal power sharing mode of MMG system. Firstly, three different power sharing modes of MMG system are formulated with related coordination mechanisms and operation models, which shows difference in terms of the management process, information exchange, and economic benefit. Secondly, a hierarchical evaluation system based on the decision-making method is presented, where three decision-making factors including economics, risk, and coordination are selected for comprehensive evaluation. The evaluation system is constructed by a simplified fuzzy analytic hierarchy process for the determination of subjective weight and evaluation of risk cost. In order to quantify the coordination cost, we introduce a coordination coefficient that varies in different sharing modes due to different management forms. Afterwards, a combination weighting method (e.g., the simplified FAHP combined with the A-EWM) is used for combining the weight distribution of those factors. Then, comprehensive evaluation values of the three sharing modes are calculated by the exact numerical values of decision-making factors and their combined weights. Finally, case studies demonstrate that the proposed method can help MGs identify the most appropriate sharing modes.
The rest of this paper is organized as follows. Section II presents the model formulation for three different power sharing modes, with their corresponding coordination mechanisms. Section III presents the decision-making on power sharing mode of MMG system, and gives the quantification method of risk and coordination cost. Case studies on three power sharing modes are conducted in Section IV. Finally, conclusions are drawn in Section V.
In this section, three mostly used power sharing modes are briefly described. Because of the difference in information exchange and management forms, different sharing modes may result in different risk and coordination costs. It is noteworthy that a market operator (named “energy sharing coordinator”, short as “coordinator” in this paper) is necessary to coordinate the power exchange among multiple MGs in those modes. Besides, the objective function for each mode is to minimize the economic cost for better analyzing the difference of shared power results.
Mode 1 represents the centralized management. As shown in

Fig. 1 Power sharing paradigm based on mode 1.
In this sharing mode, the coordinator aims at minimizing the economic cost of the MMG system. The objective function (1) includes three different cost terms, which are illustrated in (2).
(1) |
(2) |
(3) |
(4) |
1) Power Sharing Paradigm and Coordination Mechanisms
Mode 2 represents the hierarchical management. As shown in

Fig. 2 Power sharing paradigm based on mode 2.
2) Power Sharing Model
1) Upper-level model
In mode 2, the coordinator just needs to conduct the power matching activity since only power supply/demand information without prices is submitted by each MG. The matching process is realized by the supply-demand ratio model, which also contributes to the generation of sharing price. Expressions of the total power supply and demand after the self-management of MGs are given as:
(8) |
Then, the supply-demand ratio can be obtained by:
(9) |
Several piecewise functions related to the supply-demand ratio are used for modeling the internal pricing and power matching. Especially, the electricity prices of purchasing and selling are described by (10) and (11), respectively, while (12) and (13) describe the actual trading power supply and demand after the balance of supply and demand, respectively.
(10) |
(11) |
When , the expressions of actual exchange power are shown as:
(12) |
When , the expressions of actual exchange power are given as:
(13) |
2) Lower-level model
Each MG aims at minimizing their economic cost. Specifically, the internal transaction cost is added to the objective function (14) in mode 2, as shown in (16).
(14) |
(15) |
(16) |
(17) |
where the expression of is the same as (2), which is not given for simplification.
3) Constraints
The following is the expression of power balance for a single MG.
(18) |
Other constraints are the same as that in mode 1.
Mode 3 is described as the distributed management. As shown in

Fig. 3 Power sharing paradigm based on mode 3.
The clearing platform aims at maximizing the social welfare, whose objective function is presented as:
(19) |
The MG involved in this round of bidding aims at minimizing its economic cost, which is expressed by:
(20) |
(21) |
where the expressions of , , and are the same as those in (2), (3), and (4), respectively. If , MG i is a seller; otherwise, MG i is a buyer in this round of bidding.
MGs realize their power balance by:
(22) |
Other constraints are the same as that in mode 1 except for (7). Besides, some additional constraints should be added into mode 3, as shown below.
(23) |
In Section II, we established economic operation models with the corresponding coordination mechanisms of three power sharing modes. In this section, a simplified FAHP method is firstly introduced to evaluate the risk cost considering different shared information. Subsequently, the coordination cost is expressed in different functions based on different management forms. Then, a combination weighting method (e.g., the simplified FAHP combined with the A-EWM) is used to determine the weights of three decision-making factors (economics, risk, and coordination). And the result of comprehensive evaluation can be calculated by the linear weighted sum method. According to the calculated results, the sharing mode with the best comprehensive performance can be selected.
In addition to the economic benefits, the risk and coordination cost cannot be ignored when decisions are made on sharing modes. Thus, three decision-making factors including economics (B1), risk (B2), and coordination (B3) are devised. And their relative importance in comprehensive evaluation can be determined. The evaluation system, as shown in

Fig. 4 Hierarchical evaluation system of sharing modes using simplified FAHP.
As shown in
The simplified FAHP is a subjective weighting method based on mathematics and psychology [
Step 1: pairwise comparison matrix establishment. By assuming that there are u factors in an evaluation level, the evaluation factor is denoted as ap (). apq is the relative importance of ap to aq. The pairwise comparison matrix for the relative importance is expressed in

Fig. 5 Expression of pairwise comparison matrix for relative importance.
Step 2: consistent matrix generation and consistency check. Select each most likely value mpq in the above pairwise comparison matrix to form the matrix M, which is shown below:
(24) |
Then, the consistent matrix can be generated by using (25) and (26).
(25) |
(26) |
The consistency of the consistent matrix M1 is examined using (27) and (28). If matrix M1 satisfies the consistency conditions, the pairwise comparison matrix in
(27) |
(28) |
where and are the parameters of consistency check.
Step 3: non-fuzzy matrix generation and subjective weight determination. Convert the pairwise comparison matrix into the following non-fuzzy matrix M2 using (29) and (30), and calculate the weight of each evaluation factor using (31).
(29) |
(30) |
(31) |
where wp is the weight of the
Step 4: risk cost calculation. Convert the weight of each evaluation factor into score using (32).
(32) |
where Wp is the evaluation score of the
Finally, the risk cost can be evaluated for different sharing modes through final evaluation score.
In this paper, the coordination cost is an abstract concept affected by two main factors such as the management form and number of participants. In order to integrate the impact of those elements, three nonlinear equations suitable for the three sharing modes are devised. In particular, the coordination coefficients (, , and ) are determined with consideration of management forms. For example, of mode 1 is set to be 0.1, which means that the coordination between MGs is relatively easy in centralized management. But of mode 2 is set to be 0.5, because the hierarchical management increases the coordination difficulty. Considering that MGs are no longer cooperators in the distributed management, it is more difficult to coordinate all participants. We set of mode 3 to be 0.9. The expressions of coordination cost of the three modes are listed as:
(33) |
(34) |
(35) |
where , , and are the coordination costs of mode 1, mode 2, and mode 3, respectively. As seen from the above discussion, the exponent of variable N varies in different modes. That is because the coordination cost of mode 3 is greatly affected by the sharing scale (e.g., number of participants), while the impact of sharing scale on coordination cost is minimal for mode 1.
As shown in
The A-EWM is executed based on objective data, which can avoid personal interference to a large extent. Thus, this method is regarded as the objective weighting method in this paper. But the subjective tendencies of decision-makers are not taken into account. Therefore, this paper adopts a combination weighting method based on the simplified FAHP and the A-EWM for carrying out the comprehensive evaluation of sharing modes. This combination method helps balance the subjective experience of experts and the objective information in the data during the evaluation process [

Fig. 6 Comprehensive evaluation flow chart of sharing modes.
The simplified FAHP used for subjective weight determination has been described in Section III-B. The subjective weight of each decision-making factor varies in different sharing modes. Besides, wmk indicates subjective weight of the
The subjective weight is arbitrary while the objective weight is unique. Therefore, three modes share the same objective weights of decision-making factors. In addition, gm indicates the objective weight of the
Step 1: evaluation matrix establishment and normalization. The evaluation matrix X is shown below, where rows represent decision-making factors while columns represent sharing modes. v and w are the number of rows and columns, respectively. Then, matrix X is converted into the normalized matrix Y using (37) and (38). Significantly, three decision-making factors proposed in this paper belong to the negative index.
(36) |
(37) |
(38) |
where and are the maximum and minimum values in the
Step 2: anti-entropy and weight calculation. The anti-entropy and weight of each sharing mode are calculated as:
(39) |
(40) |
where and are the anti-entropy and weight of the
Step 3: score calculation and objective weight distribution. The weight mean scores of decision-making factors can be obtained by (41). Then, (42) can be used to calculate the objective weight of each decision-making factor.
(41) |
(42) |
where Zm and gm are the weight mean score and objective weight of the
After the subjective/objective weights of decision-making factors are determined, their preference coefficients can be calculated by (43).
(43) |
where and are the subjective and objective preference coefficients of the
Finally, the combination weight of each decision-making factor can be obtained by using (44).
(44) |
where is the combination weight of the
The comprehensive evaluation values can be obtained according to the exact numerical values of decision-making factors and their combined weights, which can be expressed as:
(45) |
where Ck is the comprehensive evaluation value of the
The nine MGs are numbered and divided into three categories, which are industrial MGs (MG1-MG3), commercial MGs (MG4-MG6) and residential MGs (MG7-MG9). Those nine MGs are located in the same area and connected to each other through transmission lines. The operation period T is 24 hours. The time interval is 1 hour. The battery parameters are presented in Table I. The power forecasting curves of renewable energy and power load are shown in

Fig. 7 Power forecasting curves of renewable energy and power load. (a) Industrial MGs. (b) Commercial MGs. (c) Residential MGs.

Fig. 8 Matrix that shows relative importance of criteria corresponding to B2.

Fig. 9 Matrices that show relative importance of indexes corresponding to criterions. (a) Criterion C1. (b) Criterion C2. (c) Criterion C3.
Triangular fuzzy numbers are measured by the fundamental scale of 0.1-0.9. The fundamental scale for the pairwise rating is shown in Table II. Note that if apq is the judgment value when p is compared with q, then aqp=1/apq is the judgment value when q is compared with p.
Table III shows the evaluation results of privacy risk for sharing modes 1 and 2. The detailed information including installed device and load is shared among all MGs in mode 1 since the connected MGs in the system are treated as a large virtual MG managed by a coordinator. For mode 2, MGs make self-management and cooperate with each other by sharing the supply and demand information. But in mode 3, MGs are competitors rather than cooperators, which means their information is confidential to others. In this situation, the risk cost of MMG system is the highest in mode 1, while no risk exists in mode 3. Therefore, in terms of privacy protection, mode 3 shows advantages over the other two modes.
The calculation results of coordination cost are listed in Table IV.
For mode 1, the number of participants does not have an excessive impact on coordination cost. Meanwhile, the individual goal of a single MG is consistent with the overall goal of MMG system in the centralized management, which means MGs need not sacrifice personal interests for the overall benefits. As for mode 2, the coordinator performs energy matching and price setting after self-management of each MG in the hierarchical management. The pricing model based on supply and demand ratio aims to satisfy individual interest, which makes the coordination process relatively complex. Coordinator in mode 3 clears the market in terms of reservation price and quantity of each MG to achieve the maximum social welfare. MGs pursue their own economic benefit regardless of the interest of others in the distributed management, thus it poses a great challenge to the coordination. As analyzed above, mode 1 results in the lowest coordination cost among the three modes. So, in terms of coordination, mode 1 is superior to other two modes.

Fig. 10 Power interaction of multiple MGs under different sharing modes. (a) Independent operation mode. (b) Mode 1. (c) Mode 2. (d) Mode 3.

Fig. 11 Output of flexible resource under different sharing modes. (a) Total power of batteries in mode 1. (b) Total power of batteries in mode 2.
According to the above analyses, the total economic cost is the highest in mode 3 while it is the least in mode 2. But all the three sharing modes are better than the independent operation mode in the perspective of economic benefits.
Table V shows that the total economic costs of MMG system in the three modes are reduced by 5%, 10.5%, and 3%, respectively, compared with those in the independent operation mode. Therefore, from the economics view, mode 2 is better than other two modes.

Fig. 12 Matrices that show relative importance of decision-making factors in different sharing modes. (a) Mode 1. (b) Mode 2. (c) Mode 3.
As shown in
The expressions of the evaluation matrix X and the normalized matrix Y are shown in

Fig. 13 Matrices that show evaluation values of three decision-making factors in different sharing modes. (a) Evaluation matrix. (b) Normalized matrix.
Table VI shows the subjective and objective weights of three decision-making factors.

Fig. 14 Combined weights of three decision-making factors and comprehensive evaluation values in three sharing modes.
In Table VI, the economics is set with the biggest subjective weight among three factors in any mode, which means the decision behavior is significantly affected. Besides, the risk accounts for the same proportion in modes 2 and 3. The results mentioned above are determined by the subjective experience of decision-makers. As for the objective weight, it is calculated based on objective data. Besides, the determination results of objective weight show that the risk is the most important among three factors.
It can be observed from
The evaluation values show that mode 2 achieves the best comprehensive performance among three sharing modes while mode 1 performs not as well as the other two modes.
The analysis on the decision behavior of a single MG is carried out. Before the comprehensive evaluation for a single MG, a cost allocation method is introduced based on the interactive power contribution.
Considering that modes 1 and 2 express the cooperative game, the total economic cost of MMG system should be distributed in these two modes using (46). Other two costs such as costs of risk and coordination are supposed to be distributed in the three modes by (47) and (48). The definition of interactive power contribution is shown in (49).
(46) |
(47) |
(48) |
(49) |
where , , and are the economic cost, risk cost, and coordination cost of MG i in the
Based on the cost allocation method mentioned above, the allocated cost and comprehensive evaluation values of MG3, MG6, and MG7 are shown in Table VII, Table VIII, and Table IX, respectively.
As shown in the above three tables, mode 2 still performs well for a single MG. This is owing to its better economics compared with other two modes and lower risk cost compared with mode 1.
The previous part has evaluated that mode 2 shows the best comprehensive performance for the MMG system as a whole. This part focuses on analyzing the evolutionary trend of decision behavior for the MMG system. When the number of MGs increases to a certain extent, the risk cost will grow significantly due to the expansion of the scope of information dissemination. In the situation of large-scale power sharing, piecewise functions are defined to describe the risk cost using the following form.
(50) |
(51) |
where Cr,1 and Cr,2 are the risk costs of sharing modes 1 and 2, respectively. In this paper, the turning point of the risk cost function is artificially set to be 20. Besides, the increasing number of MG will lead to the gradual increase of coordination cost. The evolutionary trends of the risk cost and coordination cost in the three sharing modes are shown in Figs.

Fig. 15 Evolutionary trends of risk cost in three sharing modes.

Fig. 16 Evolutionary trends of coordination cost in three sharing modes.
It can be observed from
Ⅴ. CONCLUSION
This paper focuses on several typical game-theory-based sharing modes of MMG system. Specifically, a method is developed to decide on the best sharing mode for general applications considering multiple influencing factors such as economics, risk, and coordination. The main conclusions are as follows.
1) According to the evaluation methods proposed in this paper, the risk cost of sharing mode based on the cooperative game with complete information is evaluated to be the highest, while the coordination cost of sharing mode based on the noncooperative game is calculated to be the highest. Besides, optimization results show that the economic cost in the mode of cooperative game with incomplete information is the minimal.
2) For the MMG system as a whole, the sharing mode based on cooperative game with incomplete information is proven to achieve the best comprehensive performance from evaluation results. For a single MG, its optimal choice for sharing mode is always consistent with that of the whole system.
3) With the expansion of sharing scale, the sharing mode based on cooperative game with incomplete information exhibits remarkable advantages over the other two modes.
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