A multi-round double auction mechanism for local energy grids with distributed and centralized resources

Research output: Chapter in Book/Report/Conference proceedingConference contribution

5 Scopus citations

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 languageEnglish (US)
Title of host publicationProceedings - 2016 IEEE 25th International Symposium on Industrial Electronics, ISIE 2016
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages672-677
Number of pages6
Volume2016-November
ISBN (Electronic)9781509008735
DOIs
StatePublished - Nov 15 2016
Event25th IEEE International Symposium on Industrial Electronics, ISIE 2016 - Santa Clara, United States
Duration: Jun 8 2016Jun 10 2016

Other

Other25th IEEE International Symposium on Industrial Electronics, ISIE 2016
CountryUnited States
CitySanta Clara
Period6/8/166/10/16

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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

Flikkema, P. G. (2016). A multi-round double auction mechanism for local energy grids with distributed and centralized resources. In Proceedings - 2016 IEEE 25th International Symposium on Industrial Electronics, ISIE 2016 (Vol. 2016-November, pp. 672-677). [7744970] Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/ISIE.2016.7744970