I have just started research for my dissertation as an Electronic Engineer and want to look into the use of an automated market maker for Peer to Peer electricity trading.
An automated market maker is a method of settling trades whereby a buyer and seller make trades out of a centralised liquidity pool. This method allows for traders to make trades whenever they want to and also without having to be matched to a corresponding buyer. You can read more here https://medium.com/balancer-protocol/what-is-an-automated-market-maker-amm-588954fc5ff7.
One of the drawbacks of such a system is that buyers and sellers are not matched and therefore it is harder to ensure that the electricity sold and electricity bought are exactly equal (as is required in a power system)? Do you think that this drawback will render an automated market maker impractical?
This is a very interesting idea William Greenway and quite possible to be implemented.
One of my former students did some research on this topic for the CIS countries
Thanks very much all - I'm trying to make a simulation of my system now. Does anyone have any idea of how to set up a system?
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