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:
-
[1];
[2];
[3];
[1]
- Nanyang Technological Univ. (Singapore)
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- 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. https://doi.org/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. https://doi.org/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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Figures / Tables:
Fig. 1: Structure of a community microgrid for P2P trading
Works referencing / citing this record:
A distribution‐market based game‐theoretical model for the coordinated operation of multiple microgrids in active distribution networks
journal, April 2020
- Zhao, Yi; Yu, Jilai; Ban, Mingfei
- International Transactions on Electrical Energy Systems, Vol. 30, Issue 4
Hierarchical dispatch of multiple microgrids using nodal price: an approach from consensus and replicator dynamics
journal, June 2019
- Velasquez, Miguel A.; Torres-PÉRez, Oscar; Quijano, Nicanor
- Journal of Modern Power Systems and Clean Energy, Vol. 7, Issue 6
Distributed Peer-to-Peer Electricity Trading Considering Network Loss in a Distribution System
journal, November 2019
- Zhang, Jin; Hu, Cungang; Zheng, Changbao
- Energies, Vol. 12, Issue 22
Towards Flexibility Trading at TSO-DSO-Customer Levels: A Review
journal, December 2019
- Khajeh, Hosna; Laaksonen, Hannu; Gazafroudi, Amin Shokri
- Energies, Vol. 13, Issue 1
Towards Flexibility Trading at TSO-DSO-Customer Levels: A Review
text, January 2020
- Khajeh, Hosna; Laaksonen, Hannu; Gazafroudi, Amin Shokri
- MDPI
Figures / Tables found in this record: