IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v328y2022ics0306261922014507.html
   My bibliography  Save this article

Design of an optimal P2P energy trading market model using bilevel stochastic optimization

Author

Listed:
  • Singh, Kamini
  • Gadh, Rajit
  • Singh, Anoop
  • Lal Dewangan, Chaman

Abstract

In a smart grid, with the emergence of behind-the-meter distributed energy resources (DER) integration, multiple consumers are emerging as prosumers. A prosumer’s chance of maximizing the payoff through peer-to-peer (P2P) trading is bringing a prolific change in the existing energy market. However, for any successful P2P trading, it requires a mutual agreement on participation (peer-matching) between a prosumer (seller) and a consumer (buyer). The presented work projects a two-level stochastic P2P energy trading model between the neighborhood peers in the distributed electricity market (DEM). A systematic and structured peer-matching mechanism, namely ‘enTrade’, is designed and introduced to accelerate the real-time P2P trading between the players (buyer & seller). The algorithm is developed into two parts. In the first part, we consider the players’ stochastic behavior in decision-making, and a joint probability density function is used to design the players ‘stochastic optimal bidding strategy. In the second part, the ‘enTrade’ uses a game theory-based leader–follower model to maximize the likelihood of players ‘bid matching for a successful P2P energy trading in DEM and optimizes the player’s payoff. The developed algorithm uses the transmission constraints to show that the voltage loss between the trading nodes is within the limit. Further, a low-voltage distribution transformer (LVDT) node-27 flow bus is used to showcase the efficacy of the presented work for a successful P2P transaction between the ‘enTrade’ matched-up peers.

Suggested Citation

  • Singh, Kamini & Gadh, Rajit & Singh, Anoop & Lal Dewangan, Chaman, 2022. "Design of an optimal P2P energy trading market model using bilevel stochastic optimization," Applied Energy, Elsevier, vol. 328(C).
    • Handle: RePEc:eee:appene:v:328:y:2022:i:c:s0306261922014507
    DOI: 10.1016/j.apenergy.2022.120193
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922014507
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2022.120193?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Esmat, Ayman & de Vos, Martijn & Ghiassi-Farrokhfal, Yashar & Palensky, Peter & Epema, Dick, 2021. "A novel decentralized platform for peer-to-peer energy trading market with blockchain technology," Applied Energy, Elsevier, vol. 282(PA).
    2. Anna Heusinger & Christian Kanzow, 2009. "Optimization reformulations of the generalized Nash equilibrium problem using Nikaido-Isoda-type functions," Computational Optimization and Applications, Springer, vol. 43(3), pages 353-377, July.
    3. Chakraborty, Shantanu & Baarslag, Tim & Kaisers, Michael, 2020. "Automated peer-to-peer negotiation for energy contract settlements in residential cooperatives," Applied Energy, Elsevier, vol. 259(C).
    4. Singh, Kamini & Singh, Anoop, 2022. "Behavioural modelling for personal and societal benefits of V2G/V2H integration on EV adoption," Applied Energy, Elsevier, vol. 319(C).
    5. Khorasany, Mohsen & Shokri Gazafroudi, Amin & Razzaghi, Reza & Morstyn, Thomas & Shafie-khah, Miadreza, 2022. "A framework for participation of prosumers in peer-to-peer energy trading and flexibility markets," Applied Energy, Elsevier, vol. 314(C).
    6. Sousa, Tiago & Soares, Tiago & Pinson, Pierre & Moret, Fabio & Baroche, Thomas & Sorin, Etienne, 2019. "Peer-to-peer and community-based markets: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 367-378.
    7. Ehsan Reihani & Pierluigi Siano & Michael Genova, 2020. "A New Method for Peer-to-Peer Energy Exchange in Distribution Grids," Energies, MDPI, vol. 13(4), pages 1-16, February.
    8. Jiang, Yanni & Zhou, Kaile & Lu, Xinhui & Yang, Shanlin, 2020. "Electricity trading pricing among prosumers with game theory-based model in energy blockchain environment," Applied Energy, Elsevier, vol. 271(C).
    9. Iria, José & Soares, Filipe, 2019. "Real-time provision of multiple electricity market products by an aggregator of prosumers," Applied Energy, Elsevier, vol. 255(C).
    10. Zhang, Chenghua & Wu, Jianzhong & Zhou, Yue & Cheng, Meng & Long, Chao, 2018. "Peer-to-Peer energy trading in a Microgrid," Applied Energy, Elsevier, vol. 220(C), pages 1-12.
    11. van Leeuwen, Gijs & AlSkaif, Tarek & Gibescu, Madeleine & van Sark, Wilfried, 2020. "An integrated blockchain-based energy management platform with bilateral trading for microgrid communities," Applied Energy, Elsevier, vol. 263(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Park, Jung-Sung & Kim, Seung Wan & Lee, Ji Woo, 2024. "P2P credit auction vs. net metering: Benefit analysis for prosumers under incremental block rate electricity tariff," Applied Energy, Elsevier, vol. 364(C).
    2. Zhou, Kaile & Chu, Yibo & Hu, Rong, 2023. "Energy supply-demand interaction model integrating uncertainty forecasting and peer-to-peer energy trading," Energy, Elsevier, vol. 285(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Esmat, Ayman & de Vos, Martijn & Ghiassi-Farrokhfal, Yashar & Palensky, Peter & Epema, Dick, 2021. "A novel decentralized platform for peer-to-peer energy trading market with blockchain technology," Applied Energy, Elsevier, vol. 282(PA).
    2. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    3. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    4. Arnob Das & Susmita Datta Peu & Md. Abdul Mannan Akanda & Abu Reza Md. Towfiqul Islam, 2023. "Peer-to-Peer Energy Trading Pricing Mechanisms: Towards a Comprehensive Analysis of Energy and Network Service Pricing (NSP) Mechanisms to Get Sustainable Enviro-Economical Energy Sector," Energies, MDPI, vol. 16(5), pages 1-27, February.
    5. Tushar, Wayes & Yuen, Chau & Saha, Tapan K. & Morstyn, Thomas & Chapman, Archie C. & Alam, M. Jan E. & Hanif, Sarmad & Poor, H. Vincent, 2021. "Peer-to-peer energy systems for connected communities: A review of recent advances and emerging challenges," Applied Energy, Elsevier, vol. 282(PA).
    6. Gržanić, M. & Capuder, T. & Zhang, N. & Huang, W., 2022. "Prosumers as active market participants: A systematic review of evolution of opportunities, models and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    7. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    8. Roth, Tamara & Utz, Manuel & Baumgarte, Felix & Rieger, Alexander & Sedlmeir, Johannes & Strüker, Jens, 2022. "Electricity powered by blockchain: A review with a European perspective," Applied Energy, Elsevier, vol. 325(C).
    9. Tsao, Yu-Chung & Thanh, Vo-Van, 2021. "Toward sustainable microgrids with blockchain technology-based peer-to-peer energy trading mechanism: A fuzzy meta-heuristic approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 136(C).
    10. Sara Khan & Uzma Amin & Ahmed Abu-Siada, 2024. "P2P Energy Trading of EVs Using Blockchain Technology in Centralized and Decentralized Networks: A Review," Energies, MDPI, vol. 17(9), pages 1-17, April.
    11. Seyedhossein, Seyed Saeed & Moeini-Aghtaie, Moein, 2022. "Risk management framework of peer-to-peer electricity markets," Energy, Elsevier, vol. 261(PB).
    12. Adewole, Ayooluwa & Shipworth, Michelle & Lemaire, Xavier & Sanderson, Danielle, 2023. "Peer-to-Peer energy trading, independence aspirations and financial benefits among Nigerian households," Energy Policy, Elsevier, vol. 174(C).
    13. Karami, Mahdi & Madlener, Reinhard, 2022. "Business models for peer-to-peer energy trading in Germany based on households’ beliefs and preferences," Applied Energy, Elsevier, vol. 306(PB).
    14. López, Iraide & Goitia-Zabaleta, Nerea & Milo, Aitor & Gómez-Cornejo, Julen & Aranzabal, Itxaso & Gaztañaga, Haizea & Fernandez, Elvira, 2024. "European energy communities: Characteristics, trends, business models and legal framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 197(C).
    15. Gjorgievski, Vladimir Z. & Cundeva, Snezana & Markovska, Natasa & Georghiou, George E., 2022. "Virtual net-billing: A fair energy sharing method for collective self-consumption," Energy, Elsevier, vol. 254(PB).
    16. Meritxell Domènech Monfort & César De Jesús & Natapon Wanapinit & Niklas Hartmann, 2022. "A Review of Peer-to-Peer Energy Trading with Standard Terminology Proposal and a Techno-Economic Characterisation Matrix," Energies, MDPI, vol. 15(23), pages 1-29, November.
    17. Zhou, Yuekuan & Lund, Peter D., 2023. "Peer-to-peer energy sharing and trading of renewable energy in smart communities ─ trading pricing models, decision-making and agent-based collaboration," Renewable Energy, Elsevier, vol. 207(C), pages 177-193.
    18. Dynge, Marthe Fogstad & Crespo del Granado, Pedro & Hashemipour, Naser & Korpås, Magnus, 2021. "Impact of local electricity markets and peer-to-peer trading on low-voltage grid operations," Applied Energy, Elsevier, vol. 301(C).
    19. Umer, Khalid & Huang, Qi & Khorasany, Mohsen & Afzal, Muhammad & Amin, Waqas, 2021. "A novel communication efficient peer-to-peer energy trading scheme for enhanced privacy in microgrids," Applied Energy, Elsevier, vol. 296(C).
    20. Jing, Rui & Hua, Weiqi & Lin, Jian & Lin, Jianyi & Zhao, Yingru & Zhou, Yue & Wu, Jianzhong, 2022. "Cost-efficient decarbonization of local energy systems by whole-system based design optimization," Applied Energy, Elsevier, vol. 326(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:328:y:2022:i:c:s0306261922014507. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.