Microgrids energy trading in islanding mode

In this paper, we address the case where two microgrids are isolated from the main power grid but can exchange energy with each other in a peer-to-peer (P2P) manner. The goal is to minimize the total cost resulting from energy generation and transportation, while each microgrid satisfies its local power demand. We first propose a centralized solution. In this approach, a central controller must have access to all the information. For those situations where privacy must be protected, we propose a distributed approach, in which each microgrid solves a local optimization problem in an iterative fashion by exchanging some information with the other one.