An Energy Market for Trading Electricity in Smart Grid Neighbourhoods

Smart grids are implemented due to cost effectiveness and improved environment of conserving energy. The vision of the smart grid relies on interacting multiple stakeholders actively. Consumers are acquiring generation capabilities, hence becoming prosumers (producers and consumers). For such prosum

Project Title

An Energy Market for Trading Electricity in Smart Grid Neighbourhoods

Project Area of Specialization

Shared Economy

Project Summary

Smart grids are implemented due to cost effectiveness and improved environment of conserving energy. The vision of the smart grid relies on interacting multiple stakeholders actively. Consumers are acquiring generation capabilities, hence becoming prosumers (producers and consumers). For such prosumers a meaningful way to interact with each other would be a market place. This project/research enables that how multiple electricity sector stakeholders can trade over electricity in such an environment (marketplace), which is modeled on a Continuous Double Auction Mechanism.

Project Objectives

Following are the main objectives that are to be achieved in this project

• Modeling of Continuous Double Auction Mechanism
• Winner allocation process 

• Winner determination
• Winner price determination

• To model a prototype of smart grid environment in LabVIEW/matlab
• To model a prototype of smart grid environment by building a proper hardware structure
• Interfacing of the hardware and software.
• Trading of electricity in continuous time.

Project Implementation Method

Every auction mechanism has two main process; winner determination and winner price determination. The winner determination of our proposed scheme is based on Social Welfare. In economics, social welfare is said to be the sum of a buyer’s surplus and a seller’s surplus. The buyer’s (seller’s) surplus is defined as the difference between the amounts the buyer (seller) is willing to pay (get) and the buyer (seller) should pay (get) to buy the electricity.

In each cycle of this auction process multiple potential buyers and multiple potential sellers of electricity submit their bids/asking price to an auctioneer, and then an auctioneer chooses some trading price (TP) that clears the market. All sellers who asked less than trading price sells, and all buyers who bade more than trading price buy at this price. Buyers and sellers that bade or asked at that exact price are also included.

Using C++/ Python the continuous double auction mechanism is modeled considering the mathematical possibilities of social welfare. LabVIEW is used to create the smart neighborhood environment on the software and results are observed, after testing the simulation hardware structure is built/setup. In order to achieve the overall system/environment of a smart grid neighborhood for trading of electricity, interfacing of the software (simulation and coding (auction)) and hardware is done.

Benefits of the Project

As we can see that the vision of the smart grid relies on interacting multiple stakeholders actively so the most highlighted benefit of this project will be to break the monopoly as there will be multiple stakeholders (prosumers).

Prosumers can trade over electricity according to their needs and it can also be financially beneficial to those prosumers who want to sell electricity. This trading of electricity will be cost effective in many ways.

Another most important benefit of this project is that in it auction is carried out on Continuous double auction mechanism meaning that there can be N numners of buyers and N number of sellers.

In near future the concept and rate of implementation of smart grid societies will be much higher so this project’s impact will be huge and it will much more beneficial both financially and economically.

Technical Details of Final Deliverable

• Continuous double auction market place:      Using C++/ Python the continuous double auction mechanism is modeled considering the mathematically possible conditions of social welfare.                                                                   
• Prosumers:                                             Multiple prosumers are setup to form a smart neighborhood and then are connected via controller setups to auction market.                             
• Complete prototype of such a market place(HW and SW):
• LabVIEW is used to create the smart neighborhood environment on the software and results are observed.
• After testing this simulation hardware structure is built/setup using prosumers, controllers (Raspberry pi/Arduino), and loads.                                                               
• Interfacing of hardware and software:        In order to achieve the overall system/environment of a smart grid neighborhood for trading of electricity, interfacing of the software (simulation and coding(auction)) and hardware is done.

Final Deliverable of the Project

HW/SW integrated system

Type of Industry

Energy

Technologies

Internet of Things (IoT), Shared Economy

Sustainable Development Goals

Decent Work and Economic Growth, Industry, Innovation and Infrastructure

Required Resources

If you need this project, please contact me on contact@adikhanofficial.com