Dynamic pricing and balancing Mechanism for a microgrid electricity market

Abstract

The trading is a well known, easy and efficient method of distributing goods. Energy cannot be stored efficiently, which implies that supply and demand of power has to be balanced at all times; this adds complexity to the trading of electric power. Introduction of microgrids, with internal balancing of power and trading with external power grid, brings many questions about power distribution, sharing of costs and revenues. Using market mechanism for such purpose seems appropriate. In this article we present an example of balancing a microgrid with its own energy production sources and connected to a higher voltage distribution grid, by introduction of the continuous double auction market with agents following the Adaptive-Aggressive Strategy.