A novel iterative double auction design and simulation platform for packetized energy trading of prosumers in a residential microgrid

Abstract Packetized energy encapsulates energy into modulated, routable, and trackable energy packets, enhancing the flexibility of managing distributed energy resources and expediting prosumers’ participation in transactive energy markets. In the context of packetized energy trading (PET), energy prosumers are naturally deemed as self‐interested agents seeking to obtain their own benefits. To align with prosumers’ demand, supply, quality of service (QoS), and system‐level social welfare, it is necessary to explore the design of prosumers’ bidding strategies and the market clearing methods, considering prosumers’ utility and the best demand response to markets. This study addresses challenges arising from prosumers’ selfishness and asymmetric preferences by proposing a PET‐oriented iterative double auction (IDA‐PET) design, where prosumers are allowed to iteratively change the bids before the auctioneer clears the market. Moreover, IDA‐PET accommodates system capacity constraints, energy balance, and economic constraints, providing cooperative strategies for both prosumers and the auctioneer. To validate the effectiveness of IDA‐PET, a novel and dedicated co‐simulation platform based on the hierarchical engine for large‐scale infrastructure co‐simulation platform is developed and case studies are conducted within a residential microgrid. The simulation results demonstrate that IDA‐PET can efficiently enhance the revenue of the auction market while meeting prosumers’ QoS requirements.