Auction based energy trading in transactive energy market with active participation of prosumers and consumers

Abstract

This paper proposes a Transactive Energy Market (TEM) platform for Peer-to-Peer (P2P) energy trading among prosumers and consumers in the Transactive environment. Prosumers with excess energy participate in the market as seller and consumers play a buyer role and communicate with each other to maximize their welfare, which is the difference between their benefit and cost. The proposed platform is an hour-ahead market, where market subscribers join to trade energy for the next hour. Market clearing is performed using auction approach and a double auction with average mechanism is applied to determine allocation and price of energy. In this platform, market subscribers pay a Subscription Charge (SC) for utilizing the distribution network and this charge is used as a price signal to reduce the possibility of overload in the network's lines. Power Transfer Distributed Factor (PTDF) is used to calculate SC by incorporating network topology and the distributed nature of prosumers and consumers. Simulation results on a simple IEEE 13 node distribution network with 10 subscribers (5 buyers and 5 sellers) demonstrate the efficacy of the proposed TEM platform and market clearing mechanism.