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

Tadahiro Taniguchi, Koki Kawasaki, Yoshiro Fukui, Tomohiro Takata and Shiro Yano
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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

Energies, 2015, vol. 8, issue 7, 1-26

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.

Keywords: multi-agent system; distributed algorithm; dual decomposition; double auction; Lagrangian relaxation (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 (5)

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