A Real-Time Limit Order Book as a Market Mechanism for Transactive Energy Systems

This paper, co-authored with Post Road’s Connected Community Team and to be presented at the 2023 IEEE PES meeting (and selected as one of the Best Conference Papers) presents a limit order book (LOB) market mechanism design for transactive energy systems. The proposed design is planned for deployment in New Hampshire and Maine under a US Department of Energy Connected Communities project. The new LOB mechanism is intended to replace or work in conjunction with the conventional transactive energy double auction mechanisms designed for retail real-time electricity price discovery, and will facilitate significant scaling of transactive energy systems. The paper provides LOB market rules, clearing algorithm, and illustrative examples and discusses clearing algorithm performance and reliability. The proposed LOB design includes support for discovering prices arising from wholesale electricity markets, distribution system asset constraints, distributed energy resource constraints, and consumer willingness to consume or produce at a reservation price. A pre-print is available here.