Auction-based Truthful Distributed Resource Allocation for Smart Grid Systems

Abstract

As the continued use of fossil fuels exacerbates the effects of climate change, various government protocols are calling for increases in the utilization of renewable energy sources. Recent improvements in the efficiency of photovoltaic (PV) cells and energy storage system (ESS) capacity have prompted many electricity consumers to install such systems and become energy prosumers. Peer-to-peer (P2P) energy trading between consumers of energy deficit and prosumers with surplus energy reserves is desirable to provide incentives to install clean energy resources and achieve balance between supply and demand. This paper proposes the application of the Vickery-Clarke-Groves (VCG) auction-based trustful algorithm on such P2P energy trading. By doing so, improved auction environments for truthful energy bids and optimal energy resource allocation can be established.