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Related Experiment Video

Updated: Jul 9, 2025

Experimental Investigation of the Hierarchical Control in DC Microgrids Using a Real-time Simulator

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Published on: February 14, 2025

Comparative Double Auction Approach for Peer-to-Peer Energy Trading on Multiple microgrids.

Sweta Malik¹, Subhasis Thakur¹, Maeve Duffy²

¹Insight Centre for Data Analytics, University of Galway, Galway, Ireland.

Smart Grids and Sustainable Energy

|December 1, 2023

Summary

Peer-to-peer (P2P) energy trading enhances renewable energy use and reduces grid losses. The Average and Vickrey-Clarke-Groves (VCG) auction mechanisms are most effective for microgrid energy trading efficiency.

Keywords:

Bidding strategies Double auction Electricity market MGs Peer-to-Peer energy trading Prosumer

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Published on: September 8, 2023

Area of Science:

Energy Systems Engineering
Distributed Energy Resources
Smart Grids

Background:

Peer-to-peer (P2P) energy trading facilitates renewable energy (RE) integration and loss reduction in distribution networks.
Microgrids (MGs) offer a decentralized platform for P2P energy trading, optimizing local energy usage.
Evaluating different auction mechanisms is crucial for enhancing P2P trading efficiency within MGs.

Purpose of the Study:

To systematically evaluate the suitability of four double auction mechanisms (Average, McAfee, Trade Reduction, VCG) for P2P energy trading in various microgrid types.
To analyze the impact of user preferences, bidding strategies, and time-of-use tariffs on P2P trading outcomes.
To identify the most effective auction mechanisms for different microgrid configurations and trading scenarios.

Main Methods:

Simulation of P2P energy trading across diverse microgrid (MG) types.
Implementation of four distinct double auction mechanisms: Average, McAfee, Trade Reduction, and Vickrey-Clarke-Groves (VCG).
Integration of user preferences, bidding strategies, and time-of-use tariffs into the trading algorithm.

Main Results:

The Average and VCG auction mechanisms demonstrated the highest effectiveness across most MG setups.
The Average mechanism proved optimal for consumer-centric MGs.
The VCG mechanism was particularly advantageous for non-peak hour energy trading; however, MG-to-MG P2P trading showed inefficiency due to limited participants.

Conclusions:

The Average and VCG mechanisms are recommended for optimizing P2P energy trading in microgrids, depending on the specific configuration and trading times.
This research provides a framework for selecting appropriate auction mechanisms to enhance P2P energy trading efficiency and RE utilization.
Further investigation into MG-to-MG P2P trading models may be required to address current inefficiencies.