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Fair Play Automatic Market Maker (FP-AMM)

A continuously clearing market architecture for coordinating distributed energy resources across the electricity system. FP-AMM combines an Automatic Market Maker, holarchical coordination, stateful fairness and Shapley-based settlement to deliver reliable, economically coherent and transparent operation of modern power systems.

At a glance

Price geography
Network-hierarchical
Coordination
Holarchical
Scarcity allocation
Fairness-aware allocation

Why consider it?

A continuously clearing market architecture for coordinating distributed energy resources across the electricity system. FP-AMM combines an Automatic Market Maker, holarchical coordination, stateful fairness and Shapley-based settlement to deliver reliable, economically coherent and transparent operation of modern power systems.

Key claim

Network-feasible allocation. Allocations must remain within the physical limits of the electricity network.

State of the debate

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Architecture at a glance

Continuous, hierarchical coordination — devices, feeders, regions and the whole system stay coupled through ongoing feedback rather than periodic clearing.

  1. Device / household / business

  2. Local coordination layer

  3. Feeder layer

  4. Regional / zonal layer

  5. System layer

Operational coordination

Automatic Market Maker

Continuous marginal-price / allocation signal — this is what sets the operational energy price.

Scarcity allocation

Fair Play

Stateful fairness — persistent fairness state, not a memoryless optimisation.

Investment / fixed-cost recovery

Shapley / system-value settlement

A separate settlement layer for system-value payments and capacity remuneration — it does not set the operational energy price above.

Solution section

Overview

A high-level introduction to the FP-AMM architecture.

Fair Play Automatic Market Maker (FP-AMM)

The Fair Play Automatic Market Maker (FP-AMM) is a proposed operating architecture for future electricity systems.

It has been designed around a simple observation: modern electricity systems no longer resemble the systems for which today's market structures were developed.

Millions of distributed energy resources—including rooftop solar, batteries, electric vehicles, flexible loads and local generation—now participate directly in the operation of the grid. Coordinating these resources efficiently requires more than periodic wholesale markets and isolated flexibility mechanisms. It requires a continuously operating coordination layer capable of allocating scarce network and energy resources fairly, transparently and in real time.

FP-AMM replaces disconnected market layers with a continuously clearing architecture that coordinates participants across all levels of the electricity system while respecting physical network constraints.

The architecture combines several complementary mechanisms:

  • A continuously clearing Automatic Market Maker for coordinating supply and demand.
  • Holarchical coordination across households, feeders, distribution and transmission networks.
  • Fair Play, a stateful scarcity allocation mechanism that guarantees fairness over time.
  • Shapley-based settlement to reward participants according to their true contribution to system value.
  • Service-level contracts that explicitly define reliability, power and energy commitments.

Rather than treating pricing, control and planning as separate problems, FP-AMM integrates them into a single cyber-physical operating framework capable of supporting the next generation of electricity systems.

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