Definition of market performance metrics to enable design and valuation of retail transactive energy system markets

This paper defines market performance metrics that will be useful for the comparison of alternative retail transactive energy system (TES) designs. Our key focus is to define an appropriate set of market performance metrics such that the metrics are free of bias and should be applicable to all TES designs. First, we categorize market performance into five categories - market efficiency, market power, market volatility, market fairness, and market reliability. Next, metrics that can quantity TES market performance were developed for each market performance category. To ease implementation, each metric is documented with a uniform structure: metric overview, formulation, significance/interpretation, inputs-outputs, and implementation. The paper is focused on comprehensive discussion on theoretical reasoning and applicability of these metrics to retail TES markets. Since TES theory is in its early stages, these market performance metrics will form a base set for market performance evaluation of TES designs. In addition, these metrics will provide not only insights about the effectiveness of alternative TES designs, but also guidance to further improve retail TES market designs.