Multiagent Based Transactive Energy Market Model

Many utilities adapt transactive energy markets to distribute the benefit between market participants. Utilities can benefit from markets in terms of peak load shaving and network expansion delay. On the other hand, the energy market subtracts a portion of the utility sales. Hence, the utility will have to split its fixed costs over lower energy, increasing the tariff. The tariff increase will lead to more sales reduction and eventually result in a death spiral. This work investigates the financial impact of market implementation on electricity company sales. The paper presents a multiagent-based market model. The model consists of day-ahead and balancing markets. Both markets are cleared using auction theory. Then, the utility's financial status is assessed before and after the market application. Then, the impact of utility sales reduction on the tariff is analyzed to raise the awernace of electricity company operators to avoid a death spiral.