Auction Based Distributed and Optimal Trading Mechanism in Electricity Markets under Blockchains

Tianbo Zhu, Zhongkang Wei, Bo Ning, Jiaqiang Niu, Jun Liu, Shouxiang Li

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Citations (Scopus)

Abstract

Auction mechanisms have been widely applied in the electricity market for determining the market price and energy trading. Those who take demand response into consideration are promising to enable interaction of end-users with the grid. In addition, blockchain is an effective way to secure the energy trading in the electricity market. In this paper, a new pricing mechanism based on auction is proposed to induce users to participate actively with the goal of social welfare maximization and to reduce the storage burden of blockchains. In this mechanism, each user submits individual bids to the system/auctioneer. The auctioneer makes optimal allocation with respect to the submitted bidding profile and broadcasts the market price to all the participants. To obtain the optimal trading strategy, an energy distribution algorithm is proposed. In this algorithm, each individual user updates its best response with respect to the market price, which is determined by the set of previous bidding curves. The expected system price determines the user's best response while the resulting load pattern will change this price reversely.

Original languageEnglish
Title of host publication2021 IEEE IAS Industrial and Commercial Power System Asia, I and CPS Asia 2021
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages39-43
Number of pages5
ISBN (Electronic)9781665434980
DOIs
Publication statusPublished - 2021
Event2021 IEEE IAS Industrial and Commercial Power System Asia, I and CPS Asia 2021 - Chengdu, China
Duration: 18 Jul 202121 Jul 2021

Publication series

Name2021 IEEE IAS Industrial and Commercial Power System Asia, I and CPS Asia 2021

Conference

Conference2021 IEEE IAS Industrial and Commercial Power System Asia, I and CPS Asia 2021
Country/TerritoryChina
CityChengdu
Period18/07/2121/07/21

Keywords

  • auction
  • demand response
  • electricity market
  • pricing mechanism
  • smart contract

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