A Nash Bargaining-Based Cooperative Peer-to-Peer Energy Trading Model for Multi-microgrid Systems

This study develops a novel model that facilitates flexible energy trading among Microgrids (MGs), not only between MGs themselves but also with the main power grid. The model is based on a Peer-to-Peer (P2P) energy trading mechanism that optimizes benefits for all participants, especially when integrated with technologies such as Battery Energy Storage Systems (BESS) and Demand Response (DR) programs. Instead of operating independently and interacting solely with the main grid as in traditional approaches, the model employs the Nash bargaining solution to encourage cooperation and mutually beneficial interactions among MGs. Simulation results demonstrate that this approach not only enhances economic efficiency but also determines optimal pricing and trading volumes, ensuring fair benefits for all parties involved. Moreover, the integration of BESS and DR programs further improves operational performance and promotes sustainability across the entire MG system.