Comparative Analysis of Auction Mechanisms and Building Strategies for P2P Solar Transactive Markets

Authors: JasonLin, Manisa Pipattanasomporn, Saifur Rahman
Publisher: Applied Energy Volume 255
Published on: 12/01/2019
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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.

Blockchain, Double auction, Game theory, Peer-to-Peer (P2P) energy trading, Smart contracts, Transactive energy