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Title: Peer-to-Peer Energy Trading in a Prosumer-Based Community Microgrid: A Game-Theoretic Model

Abstract

This paper proposes a novel game-theoretic model for peer-to-peer (P2P) energy trading among the prosumers in a community. The buyers can adjust the energy consumption behavior based on the price and quantity of the energy offered by the sellers. There exist two separate competitions during the trading process: 1) price competition among the sellers; and 2) seller selection competition among the buyers. The price competition among the sellers is modeled as a noncooperative game. The evolutionary game theory is used to model the dynamics of the buyers for selecting sellers. Moreover, an M-leader and N-follower Stackelberg game approach is used to model the interaction between buyers and sellers. Two iterative algorithms are proposed for the implementation of the games such that an equilibrium state exists in each of the games. The proposed method is applied to a small community microgrid with photo-voltaic and energy storage systems. Simulation results show the convergence of the algorithms and the effectiveness of the proposed model to handle P2P energy trading. The results also show that P2P energy trading provides significant financial and technical benefits to the community, and it is emerging as an alternative to cost-intensive energy storage systems.

Authors:
ORCiD logo [1]; ORCiD logo [2]; ORCiD logo [3]; ORCiD logo [1]
  1. Nanyang Technological Univ. (Singapore)
  2. National Renewable Energy Lab. (NREL), Golden, CO (United States)
  3. Cardiff Univ. (United Kingdom)
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE)
OSTI Identifier:
1514839
Report Number(s):
NREL/JA-5400-73926
Journal ID: ISSN 0278-0046
Grant/Contract Number:  
AC36-08GO28308
Resource Type:
Accepted Manuscript
Journal Name:
IEEE Translations on Industrial Electronics
Additional Journal Information:
Journal Volume: 66; Journal Issue: 8; Journal ID: ISSN 0278-0046
Publisher:
IEEE
Country of Publication:
United States
Language:
English
Subject:
24 POWER TRANSMISSION AND DISTRIBUTION; 29 ENERGY PLANNING, POLICY, AND ECONOMY; community microgrid; energy storage; game theory; peer-to-peer energy trading; prosumer

Citation Formats

Paudel, Amrit, Chaudhari, Kalpesh, Long, Chao, and Gooi, Hoay Beng. Peer-to-Peer Energy Trading in a Prosumer-Based Community Microgrid: A Game-Theoretic Model. United States: N. p., 2018. Web. doi:10.1109/TIE.2018.2874578.
Paudel, Amrit, Chaudhari, Kalpesh, Long, Chao, & Gooi, Hoay Beng. Peer-to-Peer Energy Trading in a Prosumer-Based Community Microgrid: A Game-Theoretic Model. United States. doi:10.1109/TIE.2018.2874578.
Paudel, Amrit, Chaudhari, Kalpesh, Long, Chao, and Gooi, Hoay Beng. Fri . "Peer-to-Peer Energy Trading in a Prosumer-Based Community Microgrid: A Game-Theoretic Model". United States. doi:10.1109/TIE.2018.2874578. https://www.osti.gov/servlets/purl/1514839.
@article{osti_1514839,
title = {Peer-to-Peer Energy Trading in a Prosumer-Based Community Microgrid: A Game-Theoretic Model},
author = {Paudel, Amrit and Chaudhari, Kalpesh and Long, Chao and Gooi, Hoay Beng},
abstractNote = {This paper proposes a novel game-theoretic model for peer-to-peer (P2P) energy trading among the prosumers in a community. The buyers can adjust the energy consumption behavior based on the price and quantity of the energy offered by the sellers. There exist two separate competitions during the trading process: 1) price competition among the sellers; and 2) seller selection competition among the buyers. The price competition among the sellers is modeled as a noncooperative game. The evolutionary game theory is used to model the dynamics of the buyers for selecting sellers. Moreover, an M-leader and N-follower Stackelberg game approach is used to model the interaction between buyers and sellers. Two iterative algorithms are proposed for the implementation of the games such that an equilibrium state exists in each of the games. The proposed method is applied to a small community microgrid with photo-voltaic and energy storage systems. Simulation results show the convergence of the algorithms and the effectiveness of the proposed model to handle P2P energy trading. The results also show that P2P energy trading provides significant financial and technical benefits to the community, and it is emerging as an alternative to cost-intensive energy storage systems.},
doi = {10.1109/TIE.2018.2874578},
journal = {IEEE Translations on Industrial Electronics},
number = 8,
volume = 66,
place = {United States},
year = {2018},
month = {10}
}

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