A Distributed Local Energy Market Clearing Framework Using a Two-Loop ADMM Method

TL;DR

This paper introduces a distributed energy market clearing framework using a two-loop ADMM algorithm to coordinate prosumers, the DSO, and the LMO, optimizing techno-economic constraints while preserving privacy.

Contribution

It proposes a novel two-loop ADMM-based distributed scheme for local energy market clearing that effectively coordinates multiple agents with privacy preservation.

Findings

Demonstrated effectiveness on IEEE-69bus test network

Successfully models interactions between agents

Addresses techno-economic constraints and privacy

Abstract

The diversity of prosumers' resources in energy communities can provide significant technical and economic benefits to both prosumers and the distribution system operator (DSO). To maximize these benefits, a coordination framework is required to address all techno-economic constraints as well as the objectives of all agents. This paper presents a fully distributed market-clearing scheme to coordinate the strategies of agents within a local energy community. In the proposed framework, prosumers, the DSO, and the local market operator (LMO) are the participating agents. The framework addresses the preferences and techno-economic constraints of all actors while preserving their privacy. The proposed model is based on a modified alternating direction method of multipliers (ADMM) method with two outer and inner loops; the outer loop models the interactions between the LMO and prosumers, while the inner loop addresses the interactions between the LMO and the DSO. The model is demonstrated on IEEE-69bus test network, showcasing its effectiveness from various perspectives.