IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v239y2022ipbs0360544221024117.html
   My bibliography  Save this article

Prosumer energy-storage trading feasibility evaluation and price bundling

Author

Listed:
  • Li, Xianshan
  • Lu, Mingfang
  • Li, Fei
  • Xiong, Wei
  • Li, Zhenxing

Abstract

Prosumer energy-storage trading (PEST) is conducive to the improvement of the power system's new energy consumption and reduction of the energy storage investment. To provide a basis for prosumers' decision making about PEST participation, we propose a PEST feasibility evaluation and price-bundling strategy. A fuzzy logic–based model for the evaluation of the degree of PEST participation was developed, considering the influence of random and fuzzy subjective and objective factors. With application of a photovoltaic-battery cost-bundling model and a battery-load utility-bundling model to cope with the difficulty of PEST pricing due to the differences in energy utility and cost between energy storage and other sources and loads. The proportion of the PEST volume in the prosumers' trading energy is determined by the degree of PEST participation. An optimization model is established to maximize the prosumer and system benefits, and the iterative double-auction method is used to determine the trading price and quantity of peer-to-peer trading with protection of the traders' privacy. A simulation conducted with a microgrid and prosumer households demonstrates the effectiveness of the proposed strategy. Purchase and sale bundling with consideration of the battery degradation cost can improve the economic benefits to the system and prosumer households.

Suggested Citation

  • Li, Xianshan & Lu, Mingfang & Li, Fei & Xiong, Wei & Li, Zhenxing, 2022. "Prosumer energy-storage trading feasibility evaluation and price bundling," Energy, Elsevier, vol. 239(PB).
  • Handle: RePEc:eee:energy:v:239:y:2022:i:pb:s0360544221024117
    DOI: 10.1016/j.energy.2021.122163
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544221024117
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.energy.2021.122163?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. Freitas Gomes, Icaro Silvestre & Perez, Yannick & Suomalainen, Emilia, 2020. "Coupling small batteries and PV generation: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 126(C).
    2. Wang, Zibo & Yu, Xiaodan & Mu, Yunfei & Jia, Hongjie, 2020. "A distributed Peer-to-Peer energy transaction method for diversified prosumers in Urban Community Microgrid System," Applied Energy, Elsevier, vol. 260(C).
    3. Wang, Shuoqi & Guo, Dongxu & Han, Xuebing & Lu, Languang & Sun, Kai & Li, Weihan & Sauer, Dirk Uwe & Ouyang, Minggao, 2020. "Impact of battery degradation models on energy management of a grid-connected DC microgrid," Energy, Elsevier, vol. 207(C).
    4. Tushar, Wayes & Saha, Tapan Kumar & Yuen, Chau & Azim, M. Imran & Morstyn, Thomas & Poor, H. Vincent & Niyato, Dustin & Bean, Richard, 2020. "A coalition formation game framework for peer-to-peer energy trading," Applied Energy, Elsevier, vol. 261(C).
    5. Joshi, Yatish & Rahman, Zillur, 2019. "Consumers' Sustainable Purchase Behaviour: Modeling the Impact of Psychological Factors," Ecological Economics, Elsevier, vol. 159(C), pages 235-243.
    6. Hui Huang & Shilin Nie & Jin Lin & Yuanyuan Wang & Jun Dong, 2020. "Optimization of Peer-to-Peer Power Trading in a Microgrid with Distributed PV and Battery Energy Storage Systems," Sustainability, MDPI, vol. 12(3), pages 1-20, January.
    7. Tushar, Wayes & Saha, Tapan Kumar & Yuen, Chau & Morstyn, Thomas & McCulloch, Malcolm D. & Poor, H. Vincent & Wood, Kristin L., 2019. "A motivational game-theoretic approach for peer-to-peer energy trading in the smart grid," Applied Energy, Elsevier, vol. 243(C), pages 10-20.
    8. Mishra, Partha Pratim & Latif, Aadil & Emmanuel, Michael & Shi, Ying & McKenna, Killian & Smith, Kandler & Nagarajan, Adarsh, 2020. "Analysis of degradation in residential battery energy storage systems for rate-based use-cases," Applied Energy, Elsevier, vol. 264(C).
    9. Nicholas C. Barberis, 2018. "Psychology-based Models of Asset Prices and Trading Volume," NBER Working Papers 24723, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    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. García-Muñoz, Fernando & Dávila, Sebastián & Quezada, Franco, 2023. "A Benders decomposition approach for solving a two-stage local energy market problem under uncertainty," Applied Energy, Elsevier, vol. 329(C).
    2. 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).
    3. 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).
    4. Zhou, Yue & Wu, Jianzhong & Song, Guanyu & Long, Chao, 2020. "Framework design and optimal bidding strategy for ancillary service provision from a peer-to-peer energy trading community," Applied Energy, Elsevier, vol. 278(C).
    5. 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).
    6. 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).
    7. Zhang, Ying & Robu, Valentin & Cremers, Sho & Norbu, Sonam & Couraud, Benoit & Andoni, Merlinda & Flynn, David & Poor, H. Vincent, 2024. "Modelling the formation of peer-to-peer trading coalitions and prosumer participation incentives in transactive energy communities," Applied Energy, Elsevier, vol. 355(C).
    8. Henni, Sarah & Staudt, Philipp & Weinhardt, Christof, 2021. "A sharing economy for residential communities with PV-coupled battery storage: Benefits, pricing and participant matching," Applied Energy, Elsevier, vol. 301(C).
    9. Li, Shenglin & Zhu, Jizhong & Chen, Ziyu & Luo, Tengyan, 2021. "Double-layer energy management system based on energy sharing cloud for virtual residential microgrid," Applied Energy, Elsevier, vol. 282(PA).
    10. Chen, Liudong & Liu, Nian & Li, Chenchen & Zhang, Silu & Yan, Xiaohe, 2021. "Peer-to-peer energy sharing with dynamic network structures," Applied Energy, Elsevier, vol. 291(C).
    11. Gan, Wei & Yan, Mingyu & Yao, Wei & Wen, Jinyu, 2021. "Peer to peer transactive energy for multiple energy hub with the penetration of high-level renewable energy," Applied Energy, Elsevier, vol. 295(C).
    12. Siripha Junlakarn & Phimsupha Kokchang & Kulyos Audomvongseree, 2022. "Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand," Energies, MDPI, vol. 15(3), pages 1-25, February.
    13. Zhang, Bidan & Du, Yang & Chen, Xiaoyang & Lim, Eng Gee & Jiang, Lin & Yan, Ke, 2022. "A novel adaptive penalty mechanism for Peer-to-Peer energy trading," Applied Energy, Elsevier, vol. 327(C).
    14. 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).
    15. Liu, Jia & Yang, Hongxing & Zhou, Yuekuan, 2021. "Peer-to-peer energy trading of net-zero energy communities with renewable energy systems integrating hydrogen vehicle storage," Applied Energy, Elsevier, vol. 298(C).
    16. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K., 2020. "Investigating the impact of P2P trading on power losses in grid-connected networks with prosumers," Applied Energy, Elsevier, vol. 263(C).
    17. Wang, Ni & Liu, Ziyi & Heijnen, Petra & Warnier, Martijn, 2022. "A peer-to-peer market mechanism incorporating multi-energy coupling and cooperative behaviors," Applied Energy, Elsevier, vol. 311(C).
    18. Filipe Bandeiras & Álvaro Gomes & Mário Gomes & Paulo Coelho, 2023. "Application and Challenges of Coalitional Game Theory in Power Systems for Sustainable Energy Trading Communities," Energies, MDPI, vol. 16(24), pages 1-42, December.
    19. Zheng, Boshen & Wei, Wei & Chen, Yue & Wu, Qiuwei & Mei, Shengwei, 2022. "A peer-to-peer energy trading market embedded with residential shared energy storage units," Applied Energy, Elsevier, vol. 308(C).
    20. He, Li & Liu, Yuanzhi & Zhang, Jie, 2021. "Peer-to-peer energy sharing with battery storage: Energy pawn in the smart grid," Applied Energy, Elsevier, vol. 297(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:energy:v:239:y:2022:i:pb:s0360544221024117. 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.journals.elsevier.com/energy .

    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.