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This paper analyzes the possibility of cooperation between neighboring independent microgids in a smart grid with renewable resources considering the security assets and vulnerabilities. The ultimate goal is to decrease the overall security risks on the smart grid. Modeling of microgrids cooperation is formulated via a coalition game definition considering the permissible amount of their vulnerabilities. Load shedding minimization can be obtained during cyber-attack occurrence for each member of coalition microgrids. This paper presents a comprehensive algorithm for optimal coalition of neighboring microgrids based on a utility function calculation which has three major components: Budget for Attack (BA), Budget for Defense (BD) and microgrid relationship effectiveness, to contribute more understanding, microgrid relationship effectiveness formulation is developed by the introduction of friction and influence matrices. Proportional Fairness (PF) index is employed to illustrate the improvement of utility function in case of optimal coalition in comparison with non-cooperative state. Microgrids coalition optimal choice based on suggested algorithm is validated by probability attack and loss of load probability (LOLP) simulation for each microgrid before and after the coalition form.<\/jats:p>","DOI":"10.3233\/jifs-171980","type":"journal-article","created":{"date-parts":[[2018,7,10]],"date-time":"2018-07-10T14:39:43Z","timestamp":1531233583000},"page":"2063-2077","update-policy":"https:\/\/doi.org\/10.1177\/sage-journals-update-policy","source":"Crossref","is-referenced-by-count":3,"title":["Cyber defense analysis of smart grid including renewable energy resources based on coalitional game theory"],"prefix":"10.1177","volume":"35","author":[{"given":"Noorollah","family":"Fardad","sequence":"first","affiliation":[{"name":"Department of Electrical Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran"}]},{"given":"Soodabeh","family":"Soleymani","sequence":"additional","affiliation":[{"name":"Department of Electrical Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran"}]},{"given":"Faramarz","family":"Faghihi","sequence":"additional","affiliation":[{"name":"Department of Electrical Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran"}]}],"member":"179","published-online":{"date-parts":[[2018,7,9]]},"reference":[{"key":"e_1_3_1_2_2","doi-asserted-by":"crossref","unstructured":"BesslerS. 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