Iterative double auction for local energy trading in microgrids: the Monash microgrid case study

This paper proposes an iterative double auction method for energy trading in microgrids. In the proposed method, buyers and sellers are paired together in a matchmaking step and engaging in negotiations. Different matchmaking methods are compared to achieve an optimal balance between speed, accuracy and efficiency, whilst considering the preferences of players and network constraints. By utilizing a double auction structure and a dynamic step size, computational load is reduced, whilst maintaining accuracy and efficiency. With the addition of a grid service charge, players are incentivized to trade with closer peers, therefore, alleviating the pressure on the microgrid network. Implementing the proposed method allows each buyer-seller match to reach mutually-agreed price and quantity values close to benchmark values. The proposed method is tested using microgrid technology within the Monash University Clayton Campus as the base architecture. The results exhibit the efficacy and fairness of the proposed method.