Mathematical Model for Agent-based Local Energy Exchange Engine (D3A)

In recent years, local energy markets have been introduced as a solution to create a competitive and fair environment for energy customers at the distribution level to trade locally. In this paper, a mathematical model for Grid Singularity's hierarchical agent-based local energy exchange engine (D3A) is presented, describing its agent-based framework, local market clearing mechanism and interval-based bidding strategies. The performance of D3A is also evaluated in a case study of a German energy community demonstrating that energy trading within a local energy market brings economic and technical benefits compared to transacting electricity with the up-stream grid and accelerates the decarbonization of the power system. According to our simulation results, we find that the community share of market savings and self sufficiency with continuous market clearing mechanisms is higher compared to the periodic market clearing mechanisms.