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Automated Linear Function Submission-Based Double Auction as Bottom-up Real-Time Pricing in a Regional Prosumers’ Electricity Network

Author

Listed:
  • Tadahiro Taniguchi

    (College of Information Science and Engineering, Ritsumeikan University, 1-1-1 Noji Higashi, Kusatsu, Shiga 525-8577, Japan)

  • Koki Kawasaki

    (Graduate School of Information Science and Engineering, Ritsumeikan University, 1-1-1 Noji Higashi, Kusatsu, Shiga 525-8577, Japan)

  • Yoshiro Fukui

    (College of Information Science and Engineering, Ritsumeikan University, 1-1-1 Noji Higashi, Kusatsu, Shiga 525-8577, Japan)

  • Tomohiro Takata

    (Research Organization of Science and Technology, Ritsumeikan University, 1-1-1 Noji Higashi, Kusatsu, Shiga 525-8577, Japan)

  • Shiro Yano

    (Division of Advanced Information Technology & Computer Science, Tokyo University of Agriculture and Technology, 2-24-16 Nakamachi, Koganei, Tokyo 184-8588, Japan)

Abstract

A linear function submission-based double auction (LFS-DA) mechanism for a regional electricity network is proposed in this paper. Each agent in the network is equipped with a battery and a generator. Each agent simultaneously becomes a producer and consumer of electricity, i.e., a prosumer, and trades electricity in the regional market at a variable price. In the LFS-DA, each agent uses linear demand and supply functions when they submit bids and asks to an auctioneer in the regional market. The LFS-DA can achieve an exact balance between electricity demand and supply for each time slot throughout the learning phase and was shown capable of solving the primal problem of maximizing the social welfare of the network without any central price setter, e.g., a utility or a large electricity company, in contrast with conventional real-time pricing (RTP). This paper presents a clarification of the relationship between the RTP algorithm derived on the basis of a dual decomposition framework and LFS-DA. Specifically, we proved that the changes in the price profile of the LFS-DA mechanism are equal to those achieved by the RTP mechanism derived from the dual decomposition framework, except for a constant factor.

Suggested Citation

  • Tadahiro Taniguchi & Koki Kawasaki & Yoshiro Fukui & Tomohiro Takata & Shiro Yano, 2015. "Automated Linear Function Submission-Based Double Auction as Bottom-up Real-Time Pricing in a Regional Prosumers’ Electricity Network," Energies, MDPI, vol. 8(7), pages 1-26, July.
    • Handle: RePEc:gam:jeners:v:8:y:2015:i:7:p:7381-7406:d:52957
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    References listed on IDEAS

    as
    1. Hongyan Li & Leigh Tesfatsion, . "Development of open source software for power market research: the AMES test bed," Journal of Energy Markets, Journal of Energy Markets.
    2. Jonathan F. Bard, 1988. "Short-Term Scheduling of Thermal-Electric Generators Using Lagrangian Relaxation," Operations Research, INFORMS, vol. 36(5), pages 756-766, October.
    3. Li, Hongyan & Tesfatsion, Leigh, 2009. "Development of Open Source Software for Power Market Research: The AMES Test Bed," ISU General Staff Papers 200901010800001391, Iowa State University, Department of Economics.
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    Cited by:

    1. Danish Mahmood & Nadeem Javaid & Sheraz Ahmed & Imran Ahmed & Iftikhar Azim Niaz & Wadood Abdul & Sanaa Ghouzali, 2017. "Orchestrating an Effective Formulation to Investigate the Impact of EMSs (Energy Management Systems) for Residential Units Prior to Installation," Energies, MDPI, vol. 10(3), pages 1-25, March.
    2. Bingtuan Gao & Xiaofeng Liu & Wenhu Zhang & Yi Tang, 2015. "Autonomous Household Energy Management Based on a Double Cooperative Game Approach in the Smart Grid," Energies, MDPI, vol. 8(7), pages 1-18, July.
    3. Tadahiro Taniguchi & Tomohiro Takata & Yoshiro Fukui & Koki Kawasaki, 2015. "Convergent Double Auction Mechanism for a Prosumers’ Decentralized Smart Grid," Energies, MDPI, vol. 8(11), pages 1-20, October.
    4. Qing Yang & Bo Zhang & Jiaquan Ran & Song Chen & Yanxiao He & Jian Sun, 2017. "Measurement of Line-to-Ground Capacitance in Distribution Network Considering Magnetizing Impedance’s Frequency Characteristic," Energies, MDPI, vol. 10(4), pages 1-14, April.
    5. Hong-Chao Gao & Joon-Ho Choi & Sang-Yun Yun & Seon-Ju Ahn, 2020. "A New Power Sharing Scheme of Multiple Microgrids and an Iterative Pairing-Based Scheduling Method," Energies, MDPI, vol. 13(7), pages 1-20, April.

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