IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i10p1895-d115723.html
   My bibliography  Save this article

Auction Mechanism of Micro-Grid Project Transfer

Author

Listed:
  • Yong Long

    (School of Economics and Business Administration, Chongqing University, Chongqing 400030, China)

  • Yu Wang

    (School of Economics and Business Administration, Chongqing University, Chongqing 400030, China)

  • Chengrong Pan

    (School of Economics and Business Administration, Chongqing University, Chongqing 400030, China
    School of International Business, Sichuan International Studies University, Chongqing 400031, China)

Abstract

Micro-grid project transfer is the primary issue of micro-grid development. The efficiency and quality of the micro-grid project transfer directly affect the quality of micro-grid project construction and development, which is very important for the sustainable development of micro-grid. This paper constructs a multi-attribute auction model of micro-grid project transfer, which reflects the characteristics of micro-grid system and the interests of stakeholders, calculates the optimal bidding strategy and analyzes the influence of relevant factors on auction equilibrium by multi-stage dynamic game with complete information, and makes a numerical simulation analysis. Results indicate that the optimal strategy of auction mechanism is positively related to power quality, energy storage quality, and carbon emissions. Different from the previous lowest price winning mechanism, the auction mechanism formed in this paper emphasizes that the energy suppliers which provide the comprehensive optimization of power quality, energy storage quality, carbon emissions, and price will win the auction, when both the project owners and energy suppliers maximize their benefits under this auction mechanism. The auction mechanism is effective because it is in line with the principle of individual rationality and incentive compatibility. In addition, the number of energy suppliers participating in the auction and the cost of the previous auction are positively related to the auction equilibrium, both of which are adjusting the equilibrium results of the auction. At the same time, the utilization rate of renewable energy and the comprehensive utilization of energy also have a positive impact on the auction equilibrium. In the end, this paper puts forward a series of policy suggestions about micro-grid project auction. The research in this paper is of great significance to improve the auction quality of micro-grid projects and promote the sustainable development of micro-grid.

Suggested Citation

  • Yong Long & Yu Wang & Chengrong Pan, 2017. "Auction Mechanism of Micro-Grid Project Transfer," Sustainability, MDPI, vol. 9(10), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:10:p:1895-:d:115723
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/10/1895/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/10/1895/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Moghaddam, Amjad Anvari & Seifi, Alireza & Niknam, Taher & Alizadeh Pahlavani, Mohammad Reza, 2011. "Multi-objective operation management of a renewable MG (micro-grid) with back-up micro-turbine/fuel cell/battery hybrid power source," Energy, Elsevier, vol. 36(11), pages 6490-6507.
    2. Kamel, Rashad M. & Alsaffar, Mohammad A. & Habib, M.K., 2016. "Novel and simple scheme for Micro-Grid protection by connecting its loads neutral points: A review on Micro-Grid protection techniques," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 931-942.
    3. Ferruzzi, Gabriella & Cervone, Guido & Delle Monache, Luca & Graditi, Giorgio & Jacobone, Francesca, 2016. "Optimal bidding in a Day-Ahead energy market for Micro Grid under uncertainty in renewable energy production," Energy, Elsevier, vol. 106(C), pages 194-202.
    4. Butler, Lucy & Neuhoff, Karsten, 2008. "Comparison of feed-in tariff, quota and auction mechanisms to support wind power development," Renewable Energy, Elsevier, vol. 33(8), pages 1854-1867.
    5. Vardakas, John S. & Zorba, Nizar & Verikoukis, Christos V., 2016. "Power demand control scenarios for smart grid applications with finite number of appliances," Applied Energy, Elsevier, vol. 162(C), pages 83-98.
    6. Malte Gephart & Corinna Klessmann & Fabian Wigand, 2017. "Renewable energy auctions – When are they (cost-)effective?," Energy & Environment, , vol. 28(1-2), pages 145-165, March.
    7. Kylili, Angeliki & Fokaides, Paris A., 2015. "Competitive auction mechanisms for the promotion renewable energy technologies: The case of the 50MW photovoltaics projects in Cyprus," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 226-233.
    8. Sen Guo & Huiru Zhao & Haoran Zhao, 2017. "The Most Economical Mode of Power Supply for Remote and Less Developed Areas in China: Power Grid Extension or Micro-Grid?," Sustainability, MDPI, vol. 9(6), pages 1-18, May.
    9. Zhao Luo & Wei Gu & Yong Sun & Xiang Yin & Yiyuan Tang & Xiaodong Yuan, 2016. "Performance Analysis of the Combined Operation of Interconnected-BCCHP Microgrids in China," Sustainability, MDPI, vol. 8(10), pages 1-20, September.
    10. Andreas Voss and Reinhard Madlener, 2017. "Auction Schemes, Bidding Strategies and the Cost-Optimal Level of Promoting Renewable Electricity in Germany," The Energy Journal, International Association for Energy Economics, vol. 0(KAPSARC S).
    11. Peter Boait & Rupert Gammon & Varun Advani & Neal Wade & David Greenwood & Peter Davison, 2017. "ESCoBox: A Set of Tools for Mini-Grid Sustainability in the Developing World," Sustainability, MDPI, vol. 9(5), pages 1-15, May.
    12. Zenginis, Ioannis & Vardakas, John S. & Echave, Cynthia & Morató, Moisés & Abadal, Jordi & Verikoukis, Christos V., 2017. "Cooperation in microgrids through power exchange: An optimal sizing and operation approach," Applied Energy, Elsevier, vol. 203(C), pages 972-981.
    13. Mayr, Dieter & Schmidt, Johannes & Schmid, Erwin, 2014. "The potentials of a reverse auction in allocating subsidies for cost-effective roof-top photovoltaic system deployment," Energy Policy, Elsevier, vol. 69(C), pages 555-565.
    14. Ustun, Taha Selim & Ozansoy, Cagil & Zayegh, Aladin, 2011. "Recent developments in microgrids and example cases around the world—A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 4030-4041.
    15. Lidula, N.W.A. & Rajapakse, A.D., 2011. "Microgrids research: A review of experimental microgrids and test systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 186-202, January.
    16. Atalay, Yasemin & Kalfagianni, Agni & Pattberg, Philipp, 2017. "Renewable energy support mechanisms in the Gulf Cooperation Council states: Analyzing the feasibility of feed-in tariffs and auction mechanisms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 723-733.
    17. Heetae Kim & Jinwoo Bae & Seoin Baek & Donggyun Nam & Hyunsung Cho & Hyun Joon Chang, 2017. "Comparative Analysis between the Government Micro-Grid Plan and Computer Simulation Results Based on Real Data: The Practical Case for a South Korean Island," Sustainability, MDPI, vol. 9(2), pages 1-18, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yong Long & Yu Wang & Chengrong Pan, 2018. "Incentive Mechanism of Micro-grid Project Development," Sustainability, MDPI, vol. 10(1), pages 1-19, January.
    2. Yong Long & Chengrong Pan & Yu Wang, 2018. "Research on a Microgrid Subsidy Strategy Based on Operational Efficiency of the Industry Chain," Sustainability, MDPI, vol. 10(5), pages 1-26, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yong Long & Yu Wang & Chengrong Pan, 2018. "Incentive Mechanism of Micro-grid Project Development," Sustainability, MDPI, vol. 10(1), pages 1-19, January.
    2. Shrimali, Gireesh & Konda, Charith & Farooquee, Arsalan Ali, 2016. "Designing renewable energy auctions for India: Managing risks to maximize deployment and cost-effectiveness," Renewable Energy, Elsevier, vol. 97(C), pages 656-670.
    3. Ndiritu, S. Wagura & Engola, Monica Katungi, 2020. "The effectiveness of feed-in-tariff policy in promoting power generation from renewable energy in Kenya," Renewable Energy, Elsevier, vol. 161(C), pages 593-605.
    4. del Río, Pablo & Kiefer, Christoph P., 2023. "Academic research on renewable electricity auctions: Taking stock and looking forward," Energy Policy, Elsevier, vol. 173(C).
    5. Isa, Normazlina Mat & Tan, Chee Wei & Yatim, A.H.M., 2018. "A comprehensive review of cogeneration system in a microgrid: A perspective from architecture and operating system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2236-2263.
    6. Kinnon, Michael Mac & Razeghi, Ghazal & Samuelsen, Scott, 2021. "The role of fuel cells in port microgrids to support sustainable goods movement," Renewable and Sustainable Energy Reviews, Elsevier, vol. 147(C).
    7. Elsied, Moataz & Oukaour, Amrane & Youssef, Tarek & Gualous, Hamid & Mohammed, Osama, 2016. "An advanced real time energy management system for microgrids," Energy, Elsevier, vol. 114(C), pages 742-752.
    8. Bracco, Stefano & Delfino, Federico & Pampararo, Fabio & Robba, Michela & Rossi, Mansueto, 2013. "The University of Genoa smart polygeneration microgrid test-bed facility: The overall system, the technologies and the research challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 442-459.
    9. Kriett, Phillip Oliver & Salani, Matteo, 2012. "Optimal control of a residential microgrid," Energy, Elsevier, vol. 42(1), pages 321-330.
    10. Syed Ali Abbas Kazmi & Muhammad Khuram Shahzad & Akif Zia Khan & Dong Ryeol Shin, 2017. "Smart Distribution Networks: A Review of Modern Distribution Concepts from a Planning Perspective," Energies, MDPI, vol. 10(4), pages 1-47, April.
    11. Hare, James & Shi, Xiaofang & Gupta, Shalabh & Bazzi, Ali, 2016. "Fault diagnostics in smart micro-grids: A survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1114-1124.
    12. Barra, P.H.A. & Coury, D.V. & Fernandes, R.A.S., 2020. "A survey on adaptive protection of microgrids and distribution systems with distributed generators," Renewable and Sustainable Energy Reviews, Elsevier, vol. 118(C).
    13. Rabiee, Abdorreza & Sadeghi, Mohammad & Aghaeic, Jamshid & Heidari, Alireza, 2016. "Optimal operation of microgrids through simultaneous scheduling of electrical vehicles and responsive loads considering wind and PV units uncertainties," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 721-739.
    14. Zia, Muhammad Fahad & Elbouchikhi, Elhoussin & Benbouzid, Mohamed, 2018. "Microgrids energy management systems: A critical review on methods, solutions, and prospects," Applied Energy, Elsevier, vol. 222(C), pages 1033-1055.
    15. Mohammad Ali Taghikhani & Behnam Zangeneh, 2022. "Optimal energy scheduling of micro-grids considering the uncertainty of solar and wind renewable resources," Journal of Scheduling, Springer, vol. 25(5), pages 567-576, October.
    16. David P. Brown and Andrew Eckert, 2020. "Imperfect Competition in Electricity Markets with Renewable Generation: The Role of Renewable Compensation Policies," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 61-88.
    17. Zeng, Zheng & Zhao, Rongxiang & Yang, Huan & Tang, Shengqing, 2014. "Policies and demonstrations of micro-grids in China: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 701-718.
    18. Zeng, Zheng & Yang, Huan & Zhao, Rongxiang & Cheng, Chong, 2013. "Topologies and control strategies of multi-functional grid-connected inverters for power quality enhancement: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 24(C), pages 223-270.
    19. Grashof, Katherina, 2019. "Are auctions likely to deter community wind projects? And would this be problematic?," Energy Policy, Elsevier, vol. 125(C), pages 20-32.
    20. Andreas Voss & Reinhard Madlener, 2017. "Auction Schemes, Bidding Strategies and the Cost-Optimal Level of Promoting Renewable Electricity in Germany," The Energy Journal, , vol. 38(1_suppl), pages 229-264, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:9:y:2017:i:10:p:1895-:d:115723. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.