Comparative analysis of auction mechanisms and bidding strategies for P2P solar transactive energy markets. (1st December 2019)

• Record Type: Journal Article
• Authors: Lin, Jason; Pipattanasomporn, Manisa; Rahman, Saifur
• Is Part Of: Applied energy. Volume 255(2019)
• Publication Date: 2019-12-01
• Subjects: Blockchain -- Double auction -- Game theory -- Peer-to-Peer (P2P) energy trading -- Smart contracts -- Transactive energy; Power (Mechanics) -- Periodicals; Energy conservation -- Periodicals; Energy conversion -- Periodicals; 621.042
• DOI: 10.1016/j.apenergy.2019.113687
• Languages: English
• ISSNs: 0306-2619

Abstract

Highlights: A comparative analysis of auction mechanisms and bidding strategies is presented. Impacts of bidding strategies & auction mechanisms on various markets is simulated. The best-offer game theoretic strategy results in near-ideal economic efficiencies. Results show that discriminatory k-DA can economically outperform uniform k-DA. However, discriminatory k-DA is more sensitive to market conditions than uniform k-DA. Abstract: The advent of blockchain technology and the increasing penetration of rooftop photovoltaic (PV) systems have presented a new opportunity for peer-to-peer (P2P) energy trading. In such transactive markets, communities may enjoy cheaper electricity prices while supporting locally produced green energy. However, there exists a considerable knowledge gap between market mechanisms and energy exchanges. Challenges arise in the auction process to ensure individual rationality, incentive compatibility, budget balance, and economic efficiency. This paper offers insights for building the foundation of a P2P energy trading market and presents a comparative analysis of auction mechanisms and bidding strategies for P2P solar electricity exchanges in terms of market demand and supply metrics. Auction mechanisms considered in this paper are Discriminatory and Uniform k -Double Auction ( k -DA). Impacts of different bidding strategies, including game theoretic approaches, on the economic efficiencies of the P2P transactive energy market are also studied. A simulation case study of 100 participants in a microgrid at various PV penetration levels is presented using typical residential load and solar PV generation profiles.