Market Strategy Evaluation for Prosumers in Local Electricity Markets
For researchers and practitioners designing local energy markets, this work provides a comparative analysis of bidding strategies, though the results are specific to the simulated community and conditions.
This paper evaluates four bidding strategies for prosumers in local electricity markets using an agent-based simulation. The extended storage cascade reduces community energy expenditure by 37.4%, and the market-adaptive strategy increases community financial gain by 40.1% in summer.
Prosumers equipped with distributed generation and flexible loads form autonomous cyber-physical energy systems that control local resources and participate in local energy markets with minimal human intervention. This work develops and evaluates an agent-based simulation platform in which agents, representing prosumer households with photovoltaic systems, battery storage systems, electric vehicles, and heat pumps, participate in a uniform-price double-sided call auction. The effect of individual bidding strategies on community-level efficiency and prosumer-level financial outcomes is incompletely understood, particularly when prosumers with heterogeneous portfolios interact in one market. Four market strategies of increasing complexity are compared: a zero-intelligence constrained baseline, a boundary-price strategy, an extended storage cascade, and a market-adaptive pricing strategy. The simulation is conducted on a community of 33 prosumers at 15-minute resolution, spanning summer, winter, and spring to characterize seasonal variation. Results show that rule-based resource control substantially reduces community energy expenditure: the extended storage cascade achieves a total cost of 39.06 EUR compared to 62.38 EUR under the zero-intelligence baseline, a reduction of 37.4 %. The market-adaptive strategy yields the highest aggregate community financial gain through local energy market participation (14.40 EUR vs. 10.28 EUR for the baseline, a gain of 40.1 %) under summer conditions. Strategy effectiveness depends on both portfolio composition and seasonal supply conditions, requiring joint evaluation of resource control and pricing decisions.