Abstract
As the availability of distributed generation and storage increases, market mechanisms are needed for local energy grids that reflect the changing distribution of market power among participants. These networks are likely to transition to a mixed model, with distributed resources backed by central or microgrid-scale generation assets. This paper introduces a framework for the design of multiple time scale markets for economic dispatch in which, at each time scale, producers, consumers, and producer-consumers are represented by agents that participate via a communication network in a multi-round double auction. The market framework enables diverse valuation of energy at different spatio-temporal scales, and the auction mechanism allows participants to equip their agents with adaptive parameterized strategies. By design, the mechanism enables compensation for uncertainty at coarse time scales by participation in markets at finer scales. The mechanism also admits offer (bid/ask) functions that generalize the traditional single limit order (price-quantity pair), so that participants can design offers to buy or sell that reflect their valuations of energy for different purposes, such as heating at subsistence and comfort levels. Performance measures are introduced that capture the ability of participants to achieve their economic objectives, and simulations demonstrate the effect on performance of different strategies.
| Original language | English (US) |
|---|---|
| Title of host publication | Proceedings - 2016 IEEE 25th International Symposium on Industrial Electronics, ISIE 2016 |
| Publisher | Institute of Electrical and Electronics Engineers Inc. |
| Pages | 672-677 |
| Number of pages | 6 |
| Volume | 2016-November |
| ISBN (Electronic) | 9781509008735 |
| DOIs | |
| State | Published - Nov 15 2016 |
| Event | 25th IEEE International Symposium on Industrial Electronics, ISIE 2016 - Santa Clara, United States Duration: Jun 8 2016 → Jun 10 2016 |
Other
| Other | 25th IEEE International Symposium on Industrial Electronics, ISIE 2016 |
|---|---|
| Country | United States |
| City | Santa Clara |
| Period | 6/8/16 → 6/10/16 |
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Keywords
- Auction
- Economic dispatch
- Market
- Modeling
- Optimization
- Smart grid
ASJC Scopus subject areas
- Electrical and Electronic Engineering
- Control and Systems Engineering
Cite this
A multi-round double auction mechanism for local energy grids with distributed and centralized resources. / Flikkema, Paul G.
Proceedings - 2016 IEEE 25th International Symposium on Industrial Electronics, ISIE 2016. Vol. 2016-November Institute of Electrical and Electronics Engineers Inc., 2016. p. 672-677 7744970.Research output: Chapter in Book/Report/Conference proceeding › Conference contribution
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TY - GEN
T1 - A multi-round double auction mechanism for local energy grids with distributed and centralized resources
AU - Flikkema, Paul G
PY - 2016/11/15
Y1 - 2016/11/15
N2 - As the availability of distributed generation and storage increases, market mechanisms are needed for local energy grids that reflect the changing distribution of market power among participants. These networks are likely to transition to a mixed model, with distributed resources backed by central or microgrid-scale generation assets. This paper introduces a framework for the design of multiple time scale markets for economic dispatch in which, at each time scale, producers, consumers, and producer-consumers are represented by agents that participate via a communication network in a multi-round double auction. The market framework enables diverse valuation of energy at different spatio-temporal scales, and the auction mechanism allows participants to equip their agents with adaptive parameterized strategies. By design, the mechanism enables compensation for uncertainty at coarse time scales by participation in markets at finer scales. The mechanism also admits offer (bid/ask) functions that generalize the traditional single limit order (price-quantity pair), so that participants can design offers to buy or sell that reflect their valuations of energy for different purposes, such as heating at subsistence and comfort levels. Performance measures are introduced that capture the ability of participants to achieve their economic objectives, and simulations demonstrate the effect on performance of different strategies.
AB - As the availability of distributed generation and storage increases, market mechanisms are needed for local energy grids that reflect the changing distribution of market power among participants. These networks are likely to transition to a mixed model, with distributed resources backed by central or microgrid-scale generation assets. This paper introduces a framework for the design of multiple time scale markets for economic dispatch in which, at each time scale, producers, consumers, and producer-consumers are represented by agents that participate via a communication network in a multi-round double auction. The market framework enables diverse valuation of energy at different spatio-temporal scales, and the auction mechanism allows participants to equip their agents with adaptive parameterized strategies. By design, the mechanism enables compensation for uncertainty at coarse time scales by participation in markets at finer scales. The mechanism also admits offer (bid/ask) functions that generalize the traditional single limit order (price-quantity pair), so that participants can design offers to buy or sell that reflect their valuations of energy for different purposes, such as heating at subsistence and comfort levels. Performance measures are introduced that capture the ability of participants to achieve their economic objectives, and simulations demonstrate the effect on performance of different strategies.
KW - Auction
KW - Economic dispatch
KW - Market
KW - Modeling
KW - Optimization
KW - Smart grid
UR - http://www.scopus.com/inward/record.url?scp=85001110968&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85001110968&partnerID=8YFLogxK
U2 - 10.1109/ISIE.2016.7744970
DO - 10.1109/ISIE.2016.7744970
M3 - Conference contribution
AN - SCOPUS:85001110968
VL - 2016-November
SP - 672
EP - 677
BT - Proceedings - 2016 IEEE 25th International Symposium on Industrial Electronics, ISIE 2016
PB - Institute of Electrical and Electronics Engineers Inc.
ER -