A Community-Based Energy Market Design Using Decentralized Decision-Making under Uncertainty

Jose L. Crespo-Vazquez; Tarek Al Skaif; Angel M. Gonzalez-Rueda; Madeleine Gibescu

doi:10.1109/TSG.2020.3036915

A Community-Based Energy Market Design Using Decentralized Decision-Making under Uncertainty

Jose L. Crespo-Vazquez^*, Tarek Al Skaif, Angel M. Gonzalez-Rueda, Madeleine Gibescu

^*Corresponding author for this work

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Abstract

Moving to a user-centric approach is seen as a key change of paradigm in order to increase the efficiency and sustainability of energy systems. Massive integration of new economic agents such as prosumers and mobile or stationary storage will play a key role in the energy transition. In this paper, a design of a community-based local energy market (CB-LEM) is proposed where the members are allowed to trade energy among each other through a local pool. The price is set on a day-ahead basis under the coordination of a Community Manager (CM). The novel aspect of this work is that every agent takes part in the determination of the local market price while deciding its own scheduling problem under uncertainty concerning renewable-energy generation and storage. After day-ahead clearing, real time operation and ex-post settlement of the local market by the CM are also explained in order to complete the proposed design. A real case study in a neighbourhood in Amsterdam, The Netherlands, is used for testing the proposed framework. In addition, the performance of the ADMM-based clearing process is analyzed in terms of scalability and convergence.

Original language	English
Journal	IEEE Transactions on Smart Grid
DOIs	https://doi.org/10.1109/TSG.2020.3036915
Publication status	E-pub ahead of print - 10 Nov 2020

Keywords

decentralized decision making
Decision making
Electricity supply industry
energy community
Games
Indexes
Local energy markets
market clearing.
Microgrids
Real-time systems
Uncertainty

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@article{35bb30f5a10d43c384b639791711a58d,

title = "A Community-Based Energy Market Design Using Decentralized Decision-Making under Uncertainty",

abstract = "Moving to a user-centric approach is seen as a key change of paradigm in order to increase the efficiency and sustainability of energy systems. Massive integration of new economic agents such as prosumers and mobile or stationary storage will play a key role in the energy transition. In this paper, a design of a community-based local energy market (CB-LEM) is proposed where the members are allowed to trade energy among each other through a local pool. The price is set on a day-ahead basis under the coordination of a Community Manager (CM). The novel aspect of this work is that every agent takes part in the determination of the local market price while deciding its own scheduling problem under uncertainty concerning renewable-energy generation and storage. After day-ahead clearing, real time operation and ex-post settlement of the local market by the CM are also explained in order to complete the proposed design. A real case study in a neighbourhood in Amsterdam, The Netherlands, is used for testing the proposed framework. In addition, the performance of the ADMM-based clearing process is analyzed in terms of scalability and convergence.",

keywords = "decentralized decision making, Decision making, Electricity supply industry, energy community, Games, Indexes, Local energy markets, market clearing., Microgrids, Real-time systems, Uncertainty",

author = "Crespo-Vazquez, {Jose L.} and Skaif, {Tarek Al} and Gonzalez-Rueda, {Angel M.} and Madeleine Gibescu",

year = "2020",

month = nov,

day = "10",

doi = "10.1109/TSG.2020.3036915",

language = "English",

journal = "IEEE Transactions on Smart Grid",

issn = "1949-3053",

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AU - Crespo-Vazquez, Jose L.

AU - Skaif, Tarek Al

AU - Gonzalez-Rueda, Angel M.

AU - Gibescu, Madeleine

PY - 2020/11/10

Y1 - 2020/11/10

N2 - Moving to a user-centric approach is seen as a key change of paradigm in order to increase the efficiency and sustainability of energy systems. Massive integration of new economic agents such as prosumers and mobile or stationary storage will play a key role in the energy transition. In this paper, a design of a community-based local energy market (CB-LEM) is proposed where the members are allowed to trade energy among each other through a local pool. The price is set on a day-ahead basis under the coordination of a Community Manager (CM). The novel aspect of this work is that every agent takes part in the determination of the local market price while deciding its own scheduling problem under uncertainty concerning renewable-energy generation and storage. After day-ahead clearing, real time operation and ex-post settlement of the local market by the CM are also explained in order to complete the proposed design. A real case study in a neighbourhood in Amsterdam, The Netherlands, is used for testing the proposed framework. In addition, the performance of the ADMM-based clearing process is analyzed in terms of scalability and convergence.

AB - Moving to a user-centric approach is seen as a key change of paradigm in order to increase the efficiency and sustainability of energy systems. Massive integration of new economic agents such as prosumers and mobile or stationary storage will play a key role in the energy transition. In this paper, a design of a community-based local energy market (CB-LEM) is proposed where the members are allowed to trade energy among each other through a local pool. The price is set on a day-ahead basis under the coordination of a Community Manager (CM). The novel aspect of this work is that every agent takes part in the determination of the local market price while deciding its own scheduling problem under uncertainty concerning renewable-energy generation and storage. After day-ahead clearing, real time operation and ex-post settlement of the local market by the CM are also explained in order to complete the proposed design. A real case study in a neighbourhood in Amsterdam, The Netherlands, is used for testing the proposed framework. In addition, the performance of the ADMM-based clearing process is analyzed in terms of scalability and convergence.

KW - decentralized decision making

KW - Decision making

KW - Electricity supply industry

KW - energy community

KW - Games

KW - Indexes

KW - Local energy markets

KW - market clearing.

KW - Microgrids

KW - Real-time systems

KW - Uncertainty

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SN - 1949-3053

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