Satisfying user preferences in community-based local energy markets — Auction-based clearing approaches

Zadé, Michel; Lumpp, Sebastian Dirk; Tzscheutschler, Peter; Wagner, Ulrich

doi:10.1016/j.apenergy.2021.118004

Cited by 23 publications

(8 citation statements)

References 27 publications

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“…Therefore, we considered market results equivalent if they cleared an equal social welfare. Social welfare is defined as the area enclosed by the supply and demand curve and the y ‐axis [48]. All 110 simulated test cases resulted in equivalent market‐clearing results.…”

Section: Comparative Performance Analysismentioning

confidence: 99%

Evaluating the added value of blockchains to local energy markets—Comparing the performance of blockchain‐based and centralised implementations

et al. 2022

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The continuous decentralisation of the energy system due to the expansion of renewable energies requires new coordination mechanisms such as Local Energy Markets (LEMs) that are capable of integrating millions of prosumers as active participants. Since the end of the 2010s, the blockchain technology has been discussed as a potential infrastructure for LEMs and as a potential game-changer in the energy industry. In this work, the authors introduce LEM specific technology-independent infrastructure requirements, present a Solidity and Python toolbox that allows to compute a comparative performance analysis between a blockchain-based and a central LEM and evaluate the added value of a blockchain-based implementation compared to a conventional reference implementation. Simulations of a LEM with a periodic double auction and settlement showed that a blockchain-based LEM operation requires more than 140 times the computation time compared to a centralised implementation and cannot fulfil data security requirements. Thus, the authors find that blockchain technology in its current state of development does not add significant value to LEMs. All implemented programmes are published in the open-source project lemlab as part of the research project RegHEE.

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Section: Comparative Performance Analysismentioning

confidence: 99%

Evaluating the added value of blockchains to local energy markets—Comparing the performance of blockchain‐based and centralised implementations

et al. 2022

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“…They create a sample community with a set of arbitrary participants (ten private households and five small businesses), and assume different willingness-to-pay values for each participant. Similarly, [42] proposes an auction-based approach to satisfy community participants' preferences, allowing them to pay premium prices and increasing community self-sufficiency. The authors state that current approaches do not consider heterogeneous user preferences.…”

Section: Related Workmentioning

confidence: 99%

Citizen Energy Communities - Insights Into Long-Term Participant Behavior From a Field Study

Richter

Staudt

Weinhardt

2022

Preprint

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Background: Citizen Energy Communities, particularly local energy markets, have been discussed for several years as a concept that allows private households, prosumers, and small local generation facilities to be actively integrated into the existing energy system. According to the literature, it promotes investment incentives and introduces local price signals, to which the participants respond with behavioral changes. However, there is a lack of long-term, real-world data, and insights on participants’ behavior in such communities, which is crucial to assess their overall performance and functionality. We fill this research gap by analyzing user behavior based on a one-year pilot project’s recorded data and expert interviews with its participants. Results: In three analyses, we observe that participants are initially willing to pay a premium price above the grid tariff for local green power, but this willingness decreases in the long run, affecting investment incentives. In contrast to assumptions in the literature, participants show decreasing activity over time and do not respond to specific information nudges. However, regular reminders and reports are perceived as valuable by the participants and support their integration into the community. Also, we cannot confirm behavioral consumption changes in response to different price signals. Conclusion: Our results show that the active integration of participants is more challenging than hitherto assumed, and both market mechanism complexity and the need for automation play a central role in a successful design.

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“…In addition, Equation (20) illustrates the minimum and maximum states of charge prescribed for storage devices. Finally, Equations ( 21) and (22) demonstrate that dispatchable generation and load shedding have a minimum and maximum rate of 0 and 1, which indicates the amount of capacity utilised by each.…”

Section: Lower-level Problemmentioning

confidence: 99%

“…Ref. [22] presents a novel auctioned-based clearing method for CBMs that takes into account user preferences and willingness to pay a premium for diverse energy quality. However, challenges regarding reserve provision and grid constraints remain unaddressed.…”

Section: Literature Reviewmentioning

confidence: 99%

A novel community‐based local electricity market for multiple communities with joint energy trading considering the risk of participation

Moradi

Moghaddam

Zamani

et al. 2022

IET Generation Trans & Dist

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Growing penetration of distributed energy resources (DER) leads to emerging changes and issues in future power systems. A system oprator aims to maximise demnad side energy trading while minimising energy improts from upstream grid. This paper proposes a reliable local energy market (LEM) trading mechanism in which consumers and prosumers can trade self-produced energy in a multiple community-based market (MCBM) framework to optimally provide the balance. The proposed framework intends to maximise social welfare by fair allocation of resources, increasing the provided reserve for the main grid, and shaving the peak power resulting in enhancement of network flexibility. The overall model is formulated in the style of a bi-level problem in which the lower-level clears the market and the upper-level is designated to redistribute the costs and benefits among market participants. Furthemore, the conditional value at risk (CVaR) approach is employed to evaluate how risk affects social welfare. Moreover, the impact of multiple communities and joint energy trading on the outcomes of the market is examined. The proposed model has been evaluated by analysing IEEE 33-bus standard test system, and numerical studies verify the effectiveness of the proposed approach.

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Satisfying user preferences in community-based local energy markets — Auction-based clearing approaches

Cited by 23 publications

References 27 publications

Evaluating the added value of blockchains to local energy markets—Comparing the performance of blockchain‐based and centralised implementations

Evaluating the added value of blockchains to local energy markets—Comparing the performance of blockchain‐based and centralised implementations

Citizen Energy Communities - Insights Into Long-Term Participant Behavior From a Field Study

A novel community‐based local electricity market for multiple communities with joint energy trading considering the risk of participation

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