IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i12p4212-d833678.html
   My bibliography  Save this article

Optimisation of Buyer and Seller Preferences for Peer-to-Peer Energy Trading in a Microgrid

Author

Listed:
  • Shama Naz Islam

    (School of Engineering, Deakin University, Geelong, VIC 3216, Australia)

  • Aiswarya Sivadas

    (School of Engineering, Deakin University, Geelong, VIC 3216, Australia)

Abstract

In this paper, an optimisation approach to prioritise buyers and sellers in a peer-to-peer (P2P) energy trading market based on distances from the aggregator has been developed. The proposed approach assigns higher preferences to buyers/sellers with a smaller distance, as this will allow lower losses in the power transmission. Under this approach, the sellers and buyers operate in a decentralised manner to optimise the preference coefficients along with the energy sold/purchased to achieve certain profits/savings. The proposed approach is implemented using a real-life dataset, and the impacts of different parameters, such as seasonal variations in renewable generation, distances and profit thresholds for sellers, have been investigated. The results show that the proposed approach allows buyers and sellers to purchase/sell more energy from the P2P trading market (2.4 times increase when maximum energy sold is considered) in comparison to the case when all participants are equally preferred. It has been observed that, with increasing distances, sellers are assigned a smaller preference coefficient, which results in sellers being willing to sell a higher amount of energy so that they can achieve the same profit threshold.

Suggested Citation

  • Shama Naz Islam & Aiswarya Sivadas, 2022. "Optimisation of Buyer and Seller Preferences for Peer-to-Peer Energy Trading in a Microgrid," Energies, MDPI, vol. 15(12), pages 1-29, June.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:12:p:4212-:d:833678
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/12/4212/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/12/4212/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chen, Kaixuan & Lin, Jin & Song, Yonghua, 2019. "Trading strategy optimization for a prosumer in continuous double auction-based peer-to-peer market: A prediction-integration model," Applied Energy, Elsevier, vol. 242(C), pages 1121-1133.
    2. Guerrero, Jaysson & Sok, Bunyim & Chapman, Archie C. & Verbič, Gregor, 2021. "Electrical-distance driven peer-to-peer energy trading in a low-voltage network," Applied Energy, Elsevier, vol. 287(C).
    3. 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).
    4. 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).
    5. 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).
    6. Rohit Trivedi & Sandipan Patra & Yousra Sidqi & Benjamin Bowler & Fiona Zimmermann & Geert Deconinck & Antonios Papaemmanouil & Shafi Khadem, 2022. "Community-Based Microgrids: Literature Review and Pathways to Decarbonise the Local Electricity Network," Energies, MDPI, vol. 15(3), pages 1-30, January.
    7. Moret, Fabio & Pinson, Pierre & Papakonstantinou, Athanasios, 2020. "Heterogeneous risk preferences in community-based electricity markets," European Journal of Operational Research, Elsevier, vol. 287(1), pages 36-48.
    8. Klein, Lurian P. & Matos, Luisa M. & Allegretti, Giovanni, 2020. "A pragmatic approach towards end-user engagement in the context of peer-to-peer energy sharing," Energy, Elsevier, vol. 205(C).
    9. 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.
    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. 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).
    2. 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).
    3. 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.
    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. Herenčić, Lin & Kirac, Mislav & Keko, Hrvoje & Kuzle, Igor & Rajšl, Ivan, 2022. "Automated energy sharing in MV and LV distribution grids within an energy community: A case for Croatian city of Križevci with a hybrid renewable system," Renewable Energy, Elsevier, vol. 191(C), pages 176-194.
    6. 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).
    7. Shama Naz Islam, 2024. "A Review of Peer-to-Peer Energy Trading Markets: Enabling Models and Technologies," Energies, MDPI, vol. 17(7), pages 1-18, April.
    8. 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).
    9. Bidan Zhang & Yang Du & Xiaoyang Chen & Eng Gee Lim & Lin Jiang & Ke Yan, 2022. "Potential Benefits for Residential Building with Photovoltaic Battery System Participation in Peer-to-Peer Energy Trading," Energies, MDPI, vol. 15(11), pages 1-21, May.
    10. Dukovska, Irena & Slootweg, J.G. (Han) & Paterakis, Nikolaos G., 2023. "Introducing user preferences for peer-to-peer electricity trading through stochastic multi-objective optimization," Applied Energy, Elsevier, vol. 338(C).
    11. 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.
    12. Botelho, D.F. & de Oliveira, L.W. & Dias, B.H. & Soares, T.A. & Moraes, C.A., 2022. "Integrated prosumers–DSO approach applied in peer-to-peer energy and reserve tradings considering network constraints," Applied Energy, Elsevier, vol. 317(C).
    13. Zare, Amir & Mehdinejad, Mehdi & Abedi, Mehrdad, 2024. "Designing a decentralized peer-to-peer energy market for an active distribution network considering loss and transaction fee allocation, and fairness," Applied Energy, Elsevier, vol. 358(C).
    14. Lin, Wen-Ting & Chen, Guo & Zhou, Xiaojun, 2022. "Distributed carbon-aware energy trading of virtual power plant under denial of service attacks: A passivity-based neurodynamic approach," Energy, Elsevier, vol. 257(C).
    15. 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).
    16. Kerscher, Selina & Koirala, Arpan & Arboleya, Pablo, 2024. "Grid-optimal energy community planning from a systems perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 199(C).
    17. Abdullah M. Alabdullatif & Enrico H. Gerding & Alvaro Perez-Diaz, 2020. "Market Design and Trading Strategies for Community Energy Markets with Storage and Renewable Supply," Energies, MDPI, vol. 13(4), pages 1-31, February.
    18. 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).
    19. 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.
    20. 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.

    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:15:y:2022:i:12:p:4212-:d:833678. 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.