IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v291y2024ics0360544223036058.html
   My bibliography  Save this article

Comparative analysis of bidding strategies for auction-based local energy markets

Author

Listed:
  • Schölzel, Joel David
  • Henn, Sarah
  • Tings, Milena
  • Streblow, Rita
  • Müller, Dirk

Abstract

In view of the ongoing integration of distributed energy resources (DERs) and energy storage into the energy system, conventional consumers are transitioning into prosumers and flexumers. Local energy markets (LEMs) enables these end users to trade electricity directly with each other in order to obtain lower energy prices and to increase the local self-consumption. Since bidding strategies have a decisive impact on efficient trading in auction-based LEMs, the comparison and consistent evaluation of bidding strategies is an important research area. As novelty we propose an uniform evaluation methodology keeping all market features equal except the used bidding strategy. For the first time we evaluate a device-oriented (DO) strategy including an incentive price signal with a zero-intelligence (ZI) strategy, a learning-intelligence (LI) strategy employing the modified Roth–Erev learning algorithm. As evaluation we analyze the resulting market trading with various key performance indicators (KPIs), which consider both cost savings and local energy supply. Our findings reveal that the chosen bidding strategy has a decisive impact on cost savings and the distribution of gains between the buyer and seller side. In a photovoltaic (PV) and combined heat and power (CHP) scenario with different technology penetrations, the end users’ gains attain the highest values for the DO bidding strategy with 7909 € and 16454 €. Also the average market clearing prices are for the DO bidding strategy the highest with 0.269 €/kWh for the and 0.3032 €/kWh, which implies that the seller side predominantly obtains the gains.

Suggested Citation

  • Schölzel, Joel David & Henn, Sarah & Tings, Milena & Streblow, Rita & Müller, Dirk, 2024. "Comparative analysis of bidding strategies for auction-based local energy markets," Energy, Elsevier, vol. 291(C).
  • Handle: RePEc:eee:energy:v:291:y:2024:i:c:s0360544223036058
    DOI: 10.1016/j.energy.2023.130211
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223036058
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.energy.2023.130211?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:291:y:2024:i:c:s0360544223036058. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.