Evaluation of Energy Market Platforms Potential in Microgrids: Scenario Analysis Based on a Double-Sided Auction

Abstract

Local energy markets represent a mean for distributed energy resources trading for prosumers and energy management for utilities. In these markets, prosumers either trade or shift their loads to maximize their trading gains via communicating with an energy market platform. The utility considers the trading process as an approach to maximize the autonomy and minimize the peak loads. The benefits of the prosumer and utility can vary depending on several parameters such as the market rules, microgrid configurations, or the lifestyle and social behavior of the market participants. In this paper, selected scenarios are presented that discuss and analyze the major factors influencing the market dynamics and microgrid energy balance based on a forward double-sided auction market model simulation. These scenarios are divided into three scenario groups that consider market design parameters, microgrid configurations, and user behavior. Furthermore, the same scenarios are once more evaluated using a reference model, where no market platform is integrated, so that the results of the energy market can be compared. The results are analyzed based on multiple metrics from the perspective of the prosumer and utility to quantify and compare the benefits of the two major market players.

Simulation Analysis of a Double Auction-Based Local Energy Market in Socio-Economic Context

“…It uses a uniform-price double-sided auction (UDA) mechanism to produce market settlement at discrete time intervals. Auction-based approaches are predominant in LEM mechanism design [4,[12][13][14], but the expected socio-economic impacts of operating consumer-facing energy infrastructure via auction on local communities has not been well-studied. On the other hand, current retail energy markets generally provide full and equal access to the energy demand of connected utility customers, but often produce conditions of energy poverty among low-income households.…”

“…Note that the function Ind[x] evaluates some input x as a Boolean expression; when x = true, Ind[x] = 1; when x = f alse, Ind[x] = 0. Technical market efficiency is measured by Equations ( 11) or (12), depending on the local-level supply-demand ratio. When supply is less than demand (i.e., SDR < 1), a technically efficient market allocates all supply locally; when supply at least equals demand (i.e., SDR ≥ 1), all local demand should be satisfied by local supply.…”

Evaluation of Energy Sharing on a Local Energy Market Through Comparison of Energy Management Techniques

“…A full peer-to-peer, a community-based, and a hybrid peer-to-peer market were analyzed and compared in terms of welfare, total import costs and export revenues to the superordinate grid as well as energy exchange within the market. El-Baz et al [10] identified the major factors influencing the market outcome and energy exchange. Several aspects of market design, microgrid configurations and user behavior were investigated for selected scenarios.…”

Distributionally robust transactive control for active distribution systems with SOP-connected multi-microgrids

“…Thus, the regional microgrid can effectively manage the internal distributed energy, and protect the interests of the system (Liu et al, 2020). Recent studies about local energy markets mainly includes multiagent-based (Jadhav et al, 2019), game theorybased (Anoh et al, 2020), auction theory-based (El-Baz et al, 2019;Esfahani et al, 2019) methods, and semi-market-based method under supervision (Park et al, 2016). Although the above research provides a reference for building a local energy market, there are still many limitations.…”