TitleDesigning a marketplace for the trading and distribution of energy in the smart grid
Publication TypeConference Paper
Year of Publication2015
AuthorsCerquides J, Picard G, Rodríguez-Aguilar JA
Conference NameAAMAS '15: Proceedings of the 14th international conference on autonomous agents and multiagent systems
Conference LocationIstanbul, Turkey
Date Published04/05/2015

Decentralized energy production is meant to reduce generation and distribution inefficiencies, leading to major economic and environ- mental benefits. This new model is meant to be supported by smart grids, electricity networks that can intelligently integrate the ac- tions of all users connected to them —generators, consumers, and prosumers (those that do both)— to efficiently deliver sustainable, economic and secure electricity supplies. A major research chal- lenge is the design of markets for prosumers in smart grids that consider distribution grid constraints. This paper introduces a novel market that allows prosumers to trade electricity while satisfying the constraints of the grid. Our market’s allocation rule is imple- mented by means of the so-called RadPro, an efficient dynamic programming algorithm that assesses in polynomial time how much energy each prosumer trades as well as how energy must be dis- tributed throughout the grid. Our empirical results show that Rad- Pro significantly outperforms both CPLEX and Gurobi in solv- ing time when computing the optimal allocation over acyclic net- works. Furthermore, the message-passing nature of RadPro offers the possibility of running our market in a decentralized (peer-to- peer) manner.