An efficient iterative double auction for energy trading in microgrids

Abstract

This paper proposes a double auction mechanism for energy trade between buying and selling agents. The framework is general enough, requiring neither the agents' preferences nor the energy pricing to be fixed values across the spatially distributed agents. A microgrid controller implements a distributed algorithm to maximize individual participating agents' utilities as well as the social welfare. This is accomplished by the controller in an iterative manner, such that the need to obtain private information pertaining to individual agents' preferences is obviated. Simulation results with a set of seven buyers and an equal number of sellers indicate that the proposed iterative double auction can establish social welfare maximization, requiring only a reasonable amount of computational overhead.