Abstract
In this paper, we propose a novel automated double auction mechanism called convergent linear function submission-based double-auction (CLFS-DA) for a prosumers’ decentralized smart grid. The target decentralized smart grid is a regional electricity network that consists of many prosumers that have a battery and a renewable energy-based generator, such as photovoltaic cells. In the proposed double-auction mechanism, each intelligent software agent representing each prosumer submits linear demand and supply functions to an automated regional electricity market where they are registered. It is proven that the CLFS-DA mechanism is guaranteed to obtain one of the global optimal price profiles in addition to it achieving an exact balance between demand and supply, even through the learning period. The proof of convergence is provided on the basis of the theory of LFS-DA, which gives a clear bridge between a function submission-based double auction and a dual decomposition (DD)-based real-time pricing procedure. The performance of the proposed mechanism is demonstrated numerically through a simulation experiment.
Highlights
In this paper, we propose a new double auction mechanism for intelligent renewable energy network (i-Rene) called the convergent linear FS-DA (LFS-DA) (CLFS-DA), which is an extension of the LFS-DA market mechanism
We described the Convergent Linear Function Submission-Based Double-Auction (CLFS-DA) mechanism for a prosumers’ decentralized smart grid called i-Rene. i-Rene consists of many prosumers equipped with a battery and a renewable energy-based generator, e.g., PVs
The CLFS-DA is an extension of the LFS-DA previously proposed double-auction mechanism in which each prosumer submits essentially linear demand and supply functions to an automated regional electricity market
Summary
Electricity network concepts employing emergent smart grid technologies are gathering attention [1,2,3,4,5,6]. To balance demand and supply in residential electricity networks based on renewables-based DERs, the information technologies and economics methods that encourage suppliers and consumers to behave so as to stabilize the network and to maximize its social welfare are promising. In this context, market-based decentralized control methods are attracting attention in the research field of smart grids [1,2,3,4,5,15,16,17,18]. For stable operation of a prosumers’ decentralized smart grid, a double auction mechanism that has a convergence proof is definitely desirable
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