Call Auction-Based Energy Management System with Adaptive Subsidy and Dynamic Operating Reserve

Abstract

According to the Paris agreement and the European climate law, carbon neutrality should be achieved by 2050. Therefore, the long-term planning of energy production and the development of green energy have become indispensable research topics in recent years. Due to the unstable production and high cost of green energy, the mechanisms of operating reserve and subsidy should be included in the energy management system. In this paper, we proposed a Call Auction-based Energy Management System (CAEMS) that manages energy using economic theories and dynamic control mechanisms. We use production theory to determine the amount of energy produced, which takes into account the market equilibrium price of supply and demand curves. Then, a dynamic operating reserve rate is designed and embedded in the demand curve to ensure energy stability. An adaptive and self-financing subsidy is proposed to gradually achieve the target energy distribution. Simulation results show that the CAEMS has outstanding improvements in convergence day (42% reduction), mean absolute error (MAE) of supply distribution (1.2% in each type), and extremely low MAE of operating reserve rate (3.2%) and failure rate (0.03%).