A Local Energy Market for Electricity and Hydrogen

Abstract

The proliferation of distributed energy resources entails efficient market mechanisms in distribution-level networks. This paper establishes a local energy market (LEM) framework in which electricity and hydrogen are traded. Players in the LEM consist of renewable distributed generators (DGs), loads, hydrogen vehicles (HVs), and a hydrogen storage system (HSS) operated by a HSS agent (HSSA). An iterative LEM clearing method is proposed based on the merit order principle. Players submit offers/bids with consideration of their own preferences and profiles according to the utility functions. The decentralized LEM clearing process not only avoids complex calculation induced by centralized decision process, but also preserves players' privacy. Case studies are conducted that demonstrate that the LEM promotes local integration of renewable energy, reduces peak demand, and improves players' utilities. Sensitivity analysis is then implemented to discuss the influences on the LEM clearing results of capacities of DGs, Loads, and the HSS, as well as price of hydrogen from the hydrogen station (HS).

Market Design and Trading Strategies for Community Energy Markets with Storage and Renewable Supply

“…These studies can be broadly categorised into two groups depending on the market structure considered: peer-to-peer (P2P) approaches, where energy is traded bilaterally between pairs of participants, and centralised auctions. More specifically, the first group includes the works in [10,[12][13][14][15][16][17][18], and the second group includes works in [3,5,7,9,16,19,20].…”

“…Regarding the second category, we can find two different types of auctions in the literature: continuous [19,20] and discrete [3,5,7,9,18]. In more detail, continuous auctions match buy and sell orders instantly and keep an order book continuously open (like stock markets).…”

“…In this case, the clearing price P is then chosen in the middle between the minimum ask and maximum bid so as to not favour suppliers in all situations, and to provide some benefits to consumers. Therefore, P is the average of the set P returned by (4) as represented by (5).…”

“…There has been extensive work on designing and evaluating energy markets in recent years [3][4][5][6][7][8], ranging from economically to environmentally focused (see also Section 2). Most research in this area usually focuses on the overall economic benefits, such as cost reductions and profits to the community as a whole, and neglects how those benefits are distributed.…”

A transactive energy management system for future community needs

“…Some agents are capable of bearing the responsibility of mediator along with acting as a seller/buyer in LET. Some examples of mediators in LET are aggregator [18,31,32], auctioneer [30,33,34], local market operator (LMO) [25,[35][36][37]. LMO is responsible for maintaining the supply-demand balance in the network.…”