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

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

4 Citations (Scopus)

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

Fingerprint

Economics
Distributed power generation
Telecommunication networks
Availability
Heating
Uncertainty
Compensation and Redress

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

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 proceedingConference contribution

Flikkema, PG 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, 7744970, Institute of Electrical and Electronics Engineers Inc., pp. 672-677, 25th IEEE International Symposium on Industrial Electronics, ISIE 2016, Santa Clara, United States, 6/8/16. https://doi.org/10.1109/ISIE.2016.7744970
Flikkema PG. 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. Institute of Electrical and Electronics Engineers Inc. 2016. p. 672-677. 7744970 https://doi.org/10.1109/ISIE.2016.7744970
Flikkema, Paul G. / A multi-round double auction mechanism for local energy grids with distributed and centralized resources. Proceedings - 2016 IEEE 25th International Symposium on Industrial Electronics, ISIE 2016. Vol. 2016-November Institute of Electrical and Electronics Engineers Inc., 2016. pp. 672-677
@inproceedings{12abb017e6d6495fb5a6ef0abb1f7cc1,
title = "A multi-round double auction mechanism for local energy grids with distributed and centralized resources",
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.",
keywords = "Auction, Economic dispatch, Market, Modeling, Optimization, Smart grid",
author = "Flikkema, {Paul G}",
year = "2016",
month = "11",
day = "15",
doi = "10.1109/ISIE.2016.7744970",
language = "English (US)",
volume = "2016-November",
pages = "672--677",
booktitle = "Proceedings - 2016 IEEE 25th International Symposium on Industrial Electronics, ISIE 2016",
publisher = "Institute of Electrical and Electronics Engineers Inc.",

}

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

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 -