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Market design and trading strategies for community energy markets with storage and renewable supply

Market design and trading strategies for community energy markets with storage and renewable supply
Market design and trading strategies for community energy markets with storage and renewable supply
Community Energy Markets (CEMs) enable trading opportunities between participants in a community to achieve savings and profits. However, the market design and the behaviour of participants are key factors that determine the success of such markets. To this end, this research presents a CEM model and conducts agent-based simulations to study the benefits of the CEM to consumers and prosumers. The proposed market structure is an hour-ahead periodic double auction. In particular, market rules are proposed that incentivise the provision of energy supply to the community and the investment in energy storage. Furthermore, a trading strategy is introduced that leverages energy flexibility created by the storage devices. Finally, as well as the hour-ahead market, we include a minute-by-minute balancing as part of the CEM’s energy exchange mechanism. The balancing approach is introduced to account for a community budget deficit caused by the time difference between supply and demand. The proposed market results in cost savings for consumers and profit for prosumers similar to existing approaches, while increasing the energy suppliers’ percentage of financial benefits from 50% to a range between 60–96% depending on the community configuration. Moreover, the market model accounts for uncertainties in supply and demand and suggests a methodology to overcome the community budget deficit.
community energy markets, energy trading, smart grid, Energy storage, auctions, multi-agent systems
1996-1073
Alabdullatif, Abdullah M.
a357fba6-f9cd-4986-8daf-b9d74ed8e81a
Gerding, Enrico
d9e92ee5-1a8c-4467-a689-8363e7743362
Perez-Diaz, Alvaro
dc83bca5-5108-4448-878f-23e73dec4c88
Alabdullatif, Abdullah M.
a357fba6-f9cd-4986-8daf-b9d74ed8e81a
Gerding, Enrico
d9e92ee5-1a8c-4467-a689-8363e7743362
Perez-Diaz, Alvaro
dc83bca5-5108-4448-878f-23e73dec4c88

Alabdullatif, Abdullah M., Gerding, Enrico and Perez-Diaz, Alvaro (2020) Market design and trading strategies for community energy markets with storage and renewable supply. Energies, 13 (4). (doi:10.3390/en13040972).

Record type: Article

Abstract

Community Energy Markets (CEMs) enable trading opportunities between participants in a community to achieve savings and profits. However, the market design and the behaviour of participants are key factors that determine the success of such markets. To this end, this research presents a CEM model and conducts agent-based simulations to study the benefits of the CEM to consumers and prosumers. The proposed market structure is an hour-ahead periodic double auction. In particular, market rules are proposed that incentivise the provision of energy supply to the community and the investment in energy storage. Furthermore, a trading strategy is introduced that leverages energy flexibility created by the storage devices. Finally, as well as the hour-ahead market, we include a minute-by-minute balancing as part of the CEM’s energy exchange mechanism. The balancing approach is introduced to account for a community budget deficit caused by the time difference between supply and demand. The proposed market results in cost savings for consumers and profit for prosumers similar to existing approaches, while increasing the energy suppliers’ percentage of financial benefits from 50% to a range between 60–96% depending on the community configuration. Moreover, the market model accounts for uncertainties in supply and demand and suggests a methodology to overcome the community budget deficit.

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Market_Design_and_Trading_Strategies_for_Community_Energy_Markets_with_Storage_and_Reweable_Supply(1) - Accepted Manuscript
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More information

Accepted/In Press date: 14 February 2020
Published date: 21 February 2020
Keywords: community energy markets, energy trading, smart grid, Energy storage, auctions, multi-agent systems

Identifiers

Local EPrints ID: 438323
URI: http://eprints.soton.ac.uk/id/eprint/438323
ISSN: 1996-1073
PURE UUID: e1bb9000-a179-4436-a2e4-6f23076dd276
ORCID for Enrico Gerding: ORCID iD orcid.org/0000-0001-7200-552X
ORCID for Alvaro Perez-Diaz: ORCID iD orcid.org/0000-0001-8081-0772

Catalogue record

Date deposited: 05 Mar 2020 17:30
Last modified: 19 May 2020 00:34

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