A new simulation study examines how households equipped with distributed generation and flexible loads—known as prosumers—can optimize their participation in local energy markets through strategic bidding. Using an agent-based platform, researchers modeled 33 prosumer households bidding simultaneously in a uniform-price double-sided call auction, each with different combinations of photovoltaic systems, battery storage, electric vehicles, and heat pumps.
The analysis compared four market strategies ranging from simple to complex. A zero-intelligence baseline provided a control, followed by a boundary-price strategy that responds to market signals, an extended storage cascade that prioritizes battery discharge timing, and a market-adaptive pricing strategy that adjusts bids dynamically based on market conditions.
Results revealed substantial performance differences. The extended storage cascade reduced total community energy expenditure to €39.06 compared to €62.38 under the baseline approach—a 37.4 percent reduction. During summer months, the market-adaptive pricing strategy generated the highest financial gains from local market participation, achieving €14.40 in aggregate community benefit versus €10.28 for the baseline, representing a 40.1 percent improvement.
Critically, the study found that strategy effectiveness is not universal. Performance varied significantly based on seasonal conditions and individual prosumer portfolio compositions. Summer conditions favored aggressive market-adaptive approaches, while different strategies may be optimal during winter or spring periods when solar generation differs and heating demands vary.
These findings have important implications for the emerging prosumer-based energy ecosystem. As distributed resources proliferate and local energy markets develop, the choice of bidding strategy directly impacts both household economics and community-wide efficiency. The research suggests that rule-based resource control substantially outperforms simpler approaches, though no single strategy dominates across all conditions. Future work should focus on adaptive strategies that adjust tactics seasonally and account for individual portfolio characteristics to maximize value capture in heterogeneous prosumer communities.
