A local energy market for electricity and hydrogen

Yunpeng Xiao*, Xifan Wang, Pierre Pinson, Xiuli Wang

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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The proliferation of distributed energy resources entails efficient market mechanisms in distribution-level networks. This paper establishes a local energy market (LEM) framework in which electricity and hydrogen are traded. Players in the LEM consist of renewable distributed generators (DGs), loads, hydrogen vehicles (HVs), and a hydrogen storage system (HSS) operated by a HSS agent (HSSA). An iterative LEM clearing method is proposed based on the merit order principle. Players submit offers/bids with consideration of their own preferences and profiles according to the utility functions. The decentralized LEM clearing process not only avoids complex calculation induced by centralized decision process, but also preserves players’ privacy. Case studies are conducted that demonstrate that the LEM promotes local integration of renewable energy, reduces peak demand, and improves players’ utilities. Sensitivity analysis is then implemented to discuss the influences on the LEM clearing results of capacities of DGs, Loads, and the HSS, as well as price of hydrogen from the hydrogen station (HS).
Original languageEnglish
JournalIEEE Transactions on Power Systems
Pages (from-to)3898-3908
Number of pages11
Publication statusPublished - 2018


  • Distributed energy resources
  • Hydrogen storage system, iterative market clearing
  • Local energy market
  • Iterative market cleaning


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