Local Energy Markets (LEMs) are a promising approach to integrating renewable energy resources:
Thermal-Electric LEM Design studies often solve the market clearing as a social-welfare maximization ([4-5])
The perfect competition assumption is questionable:
Which leads to the question:
Consumers are assumed price-takers with a quadratic utility function.
Generation: Supply of a commodity from some energy form for which no LEM exists.
Storage: Storage energy and retrieving at a later time.
Conversion The transformation between two energy commodities for which a LEM exists.
All agents are price-takers and the market outcome maximizes the social welfare.
Suppliers are profit maximizer strategic players
Repeatedly increased the number of agents of a type, without increasing the total capacity of the type.
Adding a regulated agent that can place an unlimited supply bid at a fixed regulated price.
Diversifying the local energy mix by adding new agent types.