Microgrid level competitive market using dynamic matching

High penetration of distributed energy resources raises operational and market challenges. Existing incentives and tariff support can not be sustained with penetration growth and competitive market mechanisms are required at the micorgrid level. We propose a market mechanism to bring competitiveness at the microgrid level. In this dynamic matching mechanism, individual generators and load units meet to conduct a bilateral trade. Each unit interested in maximising its benefit adopts its own bid strategy. The trade between randomly matched generation and load unit is established if their bids are compatible. If a trade is not established the units go back to the matching pool and are randomly matched again. We demonstrate that it is beneficial for the generators and loads to participate in such a microgrid level market. The mechanism also provides tools to pursue microgrid level norms of participation. The mechanism is anonymous and unlike many other approaches, it does not require the units to share their private cost or value information.