Effect of Variability of Orders in an Auction-based Local Energy Market

Abstract

To achieve a community pool towards net-zero carbon, this study explores the variability of submitted bids and offers in an auction-based local energy market (LEM). As these variables are correlated with the economic and environmental benefit of the market participants, equilibrium is desired. Specifically, we performed a comparative study of a variety of submitted prices and demanded/supplied quantities in an auction-based LEM. The results show that the unitary benefit derived by prosumers increases when there is equal or a balance of quantity and price offerings in the market. However, a high asking price and an excessive amount of energy supply in the market requiring grid balancing resulted in higher cost, which is not a desirable scenario. Thus, to achieve equilibrium and community-pool towards net-zero carbon, a LEM with balanced bids and offers is desirable to attract more active participation.