Combinatorial auctions for energy storage sharing amongst the households

This paper presents a business model for energy storage trading in a small neighborhood. A region composed of multiple households with a common energy storage system is considered, the capacity of which is shared amongst the households. The households submit bids to an auctioneer to get storage capacity in the shared energy storage system. This paper introduces a combinatorial auction mechanism for such trades to happen. The participants are allowed to bid in single bid format or with combinations of bids called packages. It also presents a novel winner determination solution for combinatorial auctions that uses an evolutionary algorithm by combining the genetic algorithm with particle swarm optimization. Furthermore, the price determination of each trade is also explained. Using MATLAB, performance evaluation and stability tests of the proposed auction technique are performed and presented in this paper.