Research on a distributed trading mechanism of electric energy on demand side for prosumers

Abstract

With the development of new power system， there arise a large number of flexible loads on the demand side， making the power users become prosumers. Prosumers can take their flexible regulation ability as commodities to participate in market-oriented transactions， and their pouring into power market is bound to bring tremendous pressure to market operating institutions. Therefore， a distributed trading mechanism is proposed to adapt to the demand-side power interactions at various points in small numbers. According to different interaction scenarios， a weak centralized trading mode and a fully distributed trading mode are designed， respectively. In the weak centralized trading mode， blockchain network and smart contract are used to replace the functions of the trading center， and the market clearing is completed iteratively based on Lagrange dual decomposition algorithm. The fully distributed trading mode uses the consistency protocol to transmit the price signal among prosumers and transforms the market clearing into the recognition of value among prosumers. The example analysis shows that the proposed distributed trading mechanism eradicates s the information barriers among prosumers， reduces the transaction cost， improves the consumption rate of renewables， and realizes the optimal allocation of power resources.

Keywords

• electricity market
• prosumer
• demand side management
• distributed transaction
• market mechanism