Transactive Energy Auction with Hidden User Information in Microgrid

— This research proposes a novel auction mechanism for transactive energy exchange between buyers and sellers, modeled as agents in a microgrid. The mechanism is implemented by a separate microgrid controller (MC) agent, and requires big data flow with the other agents through an iterative bidding process. Although private user information remains hidden to the MC, a theoretical analysis shows that under the assumption of convexity of the agents' utilities, the proposed auction is still able to maximize the social welfare (SW), i.e. the aggregate utilities of the agents. In addition, it is shown that the mechanism exhibits the key desirable features of individual rationality and weak budget balance; guaranteeing that neither the payoff to any agent nor the net monetary revenue after termination, is negative. The proposed approach also incorporates a mechanism to redistribute the sellers' shares in a fair manner. As an example, a maximum entropy based fair redistribution scheme is addressed. The theoretical analysis reported here is accompanied by extensive set of simulations that illustrate the various aspects of the proposed mechanism. NOMENCLATURE í µí²Ÿ Set of buyer agents í µí²® Set of seller agents í µí± í µí± Number of buyer agents, where í µí± í µí± = |í µí²Ÿ| í µí± í µí± Number of seller agents, where í µí± í µí± = |í µí²®| í µí±– Index of a buyer, where í µí±– ∈ í µí²Ÿ í µí±— Index of a seller, where í µí±— ∈ í µí²® í µí±¢ í µí±– Utility function of the í µí±– í µí±¡ℎ buyer í µí±¢ í µí±– ′ Marginal utility of the í µí±– í µí±¡ℎ buyer í µí±” í µí±— Generation capacity of the í µí±— í µí±¡ℎ seller í µí±£ í µí±— Utility function of the í µí±— í µí±¡ℎ seller í µí±£ í µí±— ′ Marginal utility of the í µí±— í µí±¡ℎ seller í µí±‘ í µí±– Demand delivered to the í µí±– th buyer í µí± í µí±– Buying price bid placed by the í µí±– th buyer í µí± í µí±– Buying per unit price payed by the í µí±– th buyer í µí±Ž í µí±— Availability declared by í µí±— th seller í µí± í µí±— Supply amount assigned to the í µí±— th seller í µí± í µí±— Minimum per unit selling price by the í µí±— th seller í µí± The minimum per unit buying and maximum …