IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v13y2020i4p799-d319545.html
   My bibliography  Save this article

A New Method for Peer-to-Peer Energy Exchange in Distribution Grids

Author

Listed:
  • Ehsan Reihani

    (Department of Computer and Electrical Engineering and Computer Science, California State University Bakersfield, 9001 Stockdale Hwy, Bakersfield, CA 93311, USA)

  • Pierluigi Siano

    (Department of Management & Innovation Systems, University of Salerno Via Giovanni Paolo II, 132, 84084 Fisciano (SA), Italy)

  • Michael Genova

    (Department of Computer and Electrical Engineering and Computer Science, California State University Bakersfield, 9001 Stockdale Hwy, Bakersfield, CA 93311, USA)

Abstract

In this paper, distribution-level peer-to-peer energy exchange is proposed that allows increased matching between load and generation nodes. Contributions of the proposed improved matching system between the local load and generation nodes aim at making efficient use of unused power generation, reducing the cost of electrical energy for consumers, and assisting utility companies by reducing transmission line congestion. The proposed system for matching the load and generation nodes consists of a financial layer and technical layer. In the financial layer, nodes with an excess of energy provide a price to sell energy, while the nodes needing energy bid on a price to purchase energy. A market-clearing mechanism using pool clearing is applied to determine a final price for peer-to-peer exchange. The technical layer determines the connection of energy transfer between the generation and load nodes while considering the distance, power flow constraints, and specified time windows. The proposed approach is verified in a five-node system and the results are discussed.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:4:p:799-:d:319545
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/13/4/799/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/13/4/799/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Motalleb, Mahdi & Thornton, Matsu & Reihani, Ehsan & Ghorbani, Reza, 2016. "A nascent market for contingency reserve services using demand response," Applied Energy, Elsevier, vol. 179(C), pages 985-995.
    2. 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.
    3. Thomas Morstyn & Niall Farrell & Sarah J. Darby & Malcolm D. McCulloch, 2018. "Using peer-to-peer energy-trading platforms to incentivize prosumers to form federated power plants," Nature Energy, Nature, vol. 3(2), pages 94-101, February.
    4. Lüth, Alexandra & Zepter, Jan Martin & Crespo del Granado, Pedro & Egging, Ruud, 2018. "Local electricity market designs for peer-to-peer trading: The role of battery flexibility," Applied Energy, Elsevier, vol. 229(C), pages 1233-1243.
    5. 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.
    6. Reihani, Ehsan & Motalleb, Mahdi & Ghorbani, Reza & Saad Saoud, Lyes, 2016. "Load peak shaving and power smoothing of a distribution grid with high renewable energy penetration," Renewable Energy, Elsevier, vol. 86(C), pages 1372-1379.
    7. Mengelkamp, Esther & Gärttner, Johannes & Rock, Kerstin & Kessler, Scott & Orsini, Lawrence & Weinhardt, Christof, 2018. "Designing microgrid energy markets," Applied Energy, Elsevier, vol. 210(C), pages 870-880.
    8. Hossein Shayeghi & Elnaz Shahryari & Mohammad Moradzadeh & Pierluigi Siano, 2019. "A Survey on Microgrid Energy Management Considering Flexible Energy Sources," Energies, MDPI, vol. 12(11), pages 1-26, June.
    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. Venizelos Efthymiou & Christina N. Papadimitriou, 2022. "Smart Photovoltaic Energy Systems for a Sustainable Future," Energies, MDPI, vol. 15(18), pages 1-3, September.
    2. 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).
    3. Min Fu & Zhiyu Xu & Ning Wang & Xiaoyu Lyu & Weisheng Xu, 2020. "“Peer-to-Peer Plus” Electricity Transaction within Community of Active Energy Agents Regarding Distribution Network Constraints," Energies, MDPI, vol. 13(9), pages 1-23, May.
    4. 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).
    5. Inna Čábelková & Wadim Strielkowski & Frank-Detlef Wende & Raisa Krayneva, 2020. "Factors Influencing the Threats for Urban Energy Networks: The Inhabitants’ Point of View," Energies, MDPI, vol. 13(21), pages 1-19, October.
    6. Cosic, Armin & Stadler, Michael & Mansoor, Muhammad & Zellinger, Michael, 2021. "Mixed-integer linear programming based optimization strategies for renewable energy communities," Energy, Elsevier, vol. 237(C).
    7. 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).
    8. Lee, Zachary E. & Zhang, K. Max, 2023. "Regulated peer-to-peer energy markets for harnessing decentralized demand flexibility," Applied Energy, Elsevier, vol. 336(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. 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.
    2. 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).
    3. 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).
    4. 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).
    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. Ableitner, Liliane & Tiefenbeck, Verena & Meeuw, Arne & Wörner, Anselma & Fleisch, Elgar & Wortmann, Felix, 2020. "User behavior in a real-world peer-to-peer electricity market," Applied Energy, Elsevier, vol. 270(C).
    7. Kobashi, Takuro & Yoshida, Takahiro & Yamagata, Yoshiki & Naito, Katsuhiko & Pfenninger, Stefan & Say, Kelvin & Takeda, Yasuhiro & Ahl, Amanda & Yarime, Masaru & Hara, Keishiro, 2020. "On the potential of “Photovoltaics + Electric vehicles” for deep decarbonization of Kyoto’s power systems: Techno-economic-social considerations," Applied Energy, Elsevier, vol. 275(C).
    8. Alexandra Lüth & Jens Weibezahn & Jan Martin Zepter, 2020. "On Distributional Effects in Local Electricity Market Designs—Evidence from a German Case Study," Energies, MDPI, vol. 13(8), pages 1-26, April.
    9. Maarten Wolsink, 2020. "Framing in Renewable Energy Policies: A Glossary," Energies, MDPI, vol. 13(11), pages 1-31, June.
    10. Yuki Matsuda & Yuto Yamazaki & Hiromu Oki & Yasuhiro Takeda & Daishi Sagawa & Kenji Tanaka, 2021. "Demonstration of Blockchain Based Peer to Peer Energy Trading System with Real-Life Used PHEV and HEMS Charge Control," Energies, MDPI, vol. 14(22), pages 1-12, November.
    11. 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).
    12. Soto, Esteban A. & Bosman, Lisa B. & Wollega, Ebisa & Leon-Salas, Walter D., 2021. "Peer-to-peer energy trading: A review of the literature," Applied Energy, Elsevier, vol. 283(C).
    13. 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).
    14. Francesca Andreolli & Chiara D'Alpaos & Peter Kort, 2023. "Does P2P Trading Favor Investments in PV-Battery Systems?," Working Papers 2023.02, Fondazione Eni Enrico Mattei.
    15. Kuruseelan S & Vaithilingam C, 2019. "Peer-to-Peer Energy Trading of a Community Connected with an AC and DC Microgrid," Energies, MDPI, vol. 12(19), pages 1-15, September.
    16. Seyedhossein, Seyed Saeed & Moeini-Aghtaie, Moein, 2022. "Risk management framework of peer-to-peer electricity markets," Energy, Elsevier, vol. 261(PB).
    17. 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).
    18. Guerrero, Jaysson & Gebbran, Daniel & Mhanna, Sleiman & Chapman, Archie C. & Verbič, Gregor, 2020. "Towards a transactive energy system for integration of distributed energy resources: Home energy management, distributed optimal power flow, and peer-to-peer energy trading," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    19. 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).
    20. 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).

    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:gam:jeners:v:13:y:2020:i:4:p:799-:d:319545. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.