Convergent Double Auction Mechanism for a Prosumers’ Decentralized Smart Grid

Tadahiro Taniguchi, Tomohiro Takata, Yoshiro Fukui and Koki Kawasaki
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Tadahiro Taniguchi: 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
Yoshiro Fukui: 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

Energies, 2015, vol. 8, issue 11, 1-20

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.

Keywords: distributed algorithm; double auction; dual decomposition (DD); Lagrangian relaxation; multi-agent system (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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