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Optimal bidding strategy of transactive agents in local energy markets

Ghorani, R ; Sharif University of Technology | 2018

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  1. Type of Document: Article
  2. DOI: 10.1109/TSG.2018.2878024
  3. Publisher: Institute of Electrical and Electronics Engineers Inc , 2018
  4. Abstract:
  5. Expanding the electricity market into the retail domain calls for inexpensive mass-produced smart devices that enable the small customers to participate in local energy transactions by managing the energy production/consumption and submitting buy/sell bids to the market. In this context, this paper presents a mathematically proven as well as practical approach for bidding of an autonomous smart transactive agent in local energy markets. To reach this goal, behaviors of both riskneutral and risk-averse agents selling energy to the market are modeled taking into account expected profit and risk criteria. Based on this modeling procedure, an optimal multi-step quantity-price bidding strategy is extracted. This paper mainly contributes by: (i) introducing the effective metrics and criteria for evaluating a bidding strategy, (ii) providing all theorems and lemmas required for reaching an optimal bidding strategy for either a risk-neutral or risk-averse agent, (iii) evaluating and presenting the developed approach for different market environments. The developed methodology is shown to be effective in practical applications especially for local markets. IEEE
  6. Keywords:
  7. Electricity market ; Electricity supply industry ; Local market ; Schedules ; Smart grids ; Transactive market ; Autonomous agents ; Commerce ; Electric industry ; Electric power transmission networks ; Electric utilities ; Probability density function ; Random variables ; Risk analysis ; Risk assessment ; Sales ; Scheduling ; Smart power grids ; Bidding strategy ; Local markets ; Smart devices ; Smart grid ; Transactive energy ; Power markets
  8. Source: IEEE Transactions on Smart Grid ; 2018 ; 19493053 (ISSN)
  9. URL: https://ieeexplore.ieee.org/document/8509123