Discrimination-Based Double Auction for Maximizing Social Welfare in the Electricity and Heating Market Considering Privacy Preservation

by   Lu Wang, et al.

This paper proposes a doubled-sided auction mechanism with price discrimination for social welfare (SW) maximization in the electricity and heating market. In this mechanism, energy service providers (ESPs) submit offers and load aggregators (LAs) submit bids to an energy trading center (ETC) to maximize their utility; in turn, the selfless ETC as an auctioneer leverages dis-criminatory price weights to regulate the behaviors of ESPs and LAs, which combines the individual benefits of each stakeholder with the overall social welfare to achieve the global optimum. Nash games are employed to describe the interactions between players with the same market role. Theoretically, we first prove the existence and uniqueness of the Nash equilibrium; then, considering the requirement of game players to preserve privacy, a distributed algorithm based on the alternating direction method of multipliers is developed to implement distributed bidding and analytical target cascading algorithm is applied to reach the balance of demand and supply. We validated the proposed mechanism using case studies on a city-level distribution system. The results indicated that the achieved SW improved by 4 mechanisms, and also verified the effectiveness of the distributed algorithm.


page 10

page 11


Reducing Inefficiency in Carbon Auctions with Imperfect Competition

We study auctions for carbon licenses, a policy tool used to control the...

A Two-Stage Market Mechanism for Electricity with Renewable Generation

We consider a two stage market mechanism for trading electricity includi...

An Energy Sharing Mechanism Considering Network Constraints and Market Power Limitation

As the number of prosumers with distributed energy resources (DERs) grow...

Near-optimal demand side management in retail electricity markets with coupling constraints via indirect mechanism design

Recently there have been several historical changes in electricity netwo...

When Tesla Meets Nash: Wireless Power Provision as a Public Good

The wireless power transfer (WPT) technology enables a cost-effective an...

Distributed Bi-level Energy Allocation Mechanism with Grid Constraints and Hidden User Information

A novel distributed energy allocation mechanism for Distribution System ...

Auction Algorithms for Market Equilibrium with Weak Gross Substitute Demands

We consider the exchange market models with divisible goods where the de...

Please sign up or login with your details

Forgot password? Click here to reset