Combinatorial double auctions for multiple microgrid trading

Abstract

This paper presents an auction mechanism for energy trading between multiple microgrids. We consider a region consisting of multiple interconnected microgrids wherein given time t, some microgrids have excessive energy that they wish to sell, whereas other microgrids desire to buy additional energy to meet their local demands. In this paper, we introduce a combinatorial double auction mechanism for such trades to happen. The participants can bid as a combination of bids along with a single bid format. We also present a novel winner determination solution for combinatorial double auctions using evolutionary algorithms. Two algorithms combining genetic algorithm and particle swarm optimization are presented in this paper. Price determination for each trade is also explained. Using MATLAB, performance evaluation and stability tests of the proposed auction technique are performed and presented.