A framework is proposed for an electrical power microgrid, such as
for a colony or small township of homes that generate electrical
power from solar energy and use it directly when possible, and via
stored battery power at other times. The situation is described as
a demand and supply problem in a multi-agent system with many
consumers and suppliers and no explicit communication or
coordination among the agents. Such a demand and supply problem is
modeled as a Potluck Problem, a generalization of the Santa Fe Bar
Problem. Power produced by PV panels and batteries may be used in
the local market, in addition to being consumed locally. The
proposed microgrid system model is able to determine the optimum
operation of a solar-powered microgrid with respect to load demand,
environmental requirements, PV panel and battery capacities. The
results indicate the effect of various such parameters on the
performance of these micro-grids. This paper also analyzes and
proposes, based on auction theory, the most efficient and competing
pricing mechanism in the proposed microgrid system model. Two
important market bidding techniques, single bidding and
discriminatory bidding, are considered. The microgrid is made to
participate in the bidding process to serve the consumers at a
reduced price and to provide better revenues. The viability of the
model proposed is illustrated with analyses using realistic
assumptions and published historical data.