IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i8p3464-d1124101.html
   My bibliography  Save this article

A New Design for the Peer-to-Peer Electricity and Gas Markets Based on Robust Probabilistic Programming

Author

Listed:
  • Seyed Amin Sedgh

    (Center of Excellence for Power Systems Automation and Operation, School of Electrical Engineering, Iran University of Science and Technology, Tehran 16846-13114, Iran)

  • Hossein Aghamohammadloo

    (Center of Excellence for Power Systems Automation and Operation, School of Electrical Engineering, Iran University of Science and Technology, Tehran 16846-13114, Iran)

  • Hassan Khazaei

    (Center of Excellence for Power Systems Automation and Operation, School of Electrical Engineering, Iran University of Science and Technology, Tehran 16846-13114, Iran)

  • Mehdi Mehdinejad

    (Center of Excellence for Power Systems Automation and Operation, School of Electrical Engineering, Iran University of Science and Technology, Tehran 16846-13114, Iran)

  • Somayeh Asadi

    (Department of Architectural Engineering, Pennsylvania State University, University Park, State College, PA 16802, USA)

Abstract

This paper presents a fully-decentralized peer-to-peer (P2P) electricity and gas market for retailers and prosumers with coupled energy units, considering the uncertainties of wholesale electricity market price and prosumers’ demand. The goal is to improve the overall economy of the proposed market while increasing its flexibility. In this market, the retailers are equipped with self-generation and energy storage units and can bilaterally negotiate for electricity and gas transactions with prosumers to maximize their profit. Furthermore, they can sell power to the upstream market in addition to prosumers. The prosumers have access to several retailers to supply their required electricity and gas and can freely provide their energy needs from every retailer, contributing to dynamicity in the proposed market. Given that they have an energy hub consisting of boiler units, combined heat and electricity (CHP) units, and electric pumps, they can switch their energy supply source from electricity to gas and vice versa. A robust possibilistic programming approach is applied to address the uncertainties. A fully-decentralized approach called the alternating direction method of multipliers (ADMM) is utilized to solve the presented decentralized robust problem. The proposed decentralized algorithm finds an optimum solution by establishing a smart balance between the average expected value, optimality robustness, and feasibility robustness. The feasibility and competitiveness of the proposed approach are evaluated through numerical studies on a distribution system with two retailers and three prosumers. The data analysis of the simulation results verifies the effectiveness of the proposed decentralized robust framework as well as the proposed decentralized solution. According to the maximum deviation, the expected optimal value in the robust case, the retailer’s profit has decreased by 12.1 percent, and the prosumers’ cost has increased by 27.4 percent due to the feasibility penalty term.

Suggested Citation

  • Seyed Amin Sedgh & Hossein Aghamohammadloo & Hassan Khazaei & Mehdi Mehdinejad & Somayeh Asadi, 2023. "A New Design for the Peer-to-Peer Electricity and Gas Markets Based on Robust Probabilistic Programming," Energies, MDPI, vol. 16(8), pages 1-19, April.
  • Handle: RePEc:gam:jeners:v:16:y:2023:i:8:p:3464-:d:1124101
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/8/3464/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/16/8/3464/
    Download Restriction: no
    ---><---

    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. Qiu, Haifeng & You, Fengqi, 2020. "Decentralized-distributed robust electric power scheduling for multi-microgrid systems," Applied Energy, Elsevier, vol. 269(C).
    3. Seyfi, Mohammad & Mehdinejad, Mehdi & Mohammadi-Ivatloo, Behnam & Shayanfar, Heidarali, 2022. "Deep learning-based scheduling of virtual energy hubs with plug-in hybrid compressed natural gas-electric vehicles," Applied Energy, Elsevier, vol. 321(C).
    4. Mehdinejad, Mehdi & Shayanfar, Heidarali & Mohammadi-Ivatloo, Behnam, 2022. "Peer-to-peer decentralized energy trading framework for retailers and prosumers," Applied Energy, Elsevier, vol. 308(C).
    5. 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).
    6. 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).
    7. Nikmehr, Nima, 2020. "Distributed robust operational optimization of networked microgrids embedded interconnected energy hubs," Energy, Elsevier, vol. 199(C).
    8. Khaligh, Vahid & Ghezelbash, Azam & Mazidi, Mohammadreza & Liu, Jay & Ryu, Jun-Hyung, 2023. "P-robust energy management of a multi-energy microgrid enabled with energy conversions under various uncertainties," Energy, Elsevier, vol. 271(C).
    9. Aghamohammadloo, Hossein & Talaeizadeh, Valiollah & Shahanaghi, Kamran & Aghaei, Jamshid & Shayanfar, Heidarali & Shafie-khah, Miadreza & Catalão, João P.S., 2021. "Integrated Demand Response programs and energy hubs retail energy market modelling," Energy, Elsevier, vol. 234(C).
    10. Babagheibi, Mahsa & Jadid, Shahram & Kazemi, Ahad, 2023. "An Incentive-based robust flexibility market for congestion management of an active distribution system to use the free capacity of Microgrids," Applied Energy, Elsevier, vol. 336(C).
    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. Hassan Khazaei & Hossein Aghamohammadloo & Milad Habibi & Mehdi Mehdinejad & Amin Mohammadpour Shotorbani, 2023. "Novel Decentralized Peer-to-Peer Gas and Electricity Transaction Market between Prosumers and Retailers Considering Integrated Demand Response Programs," Sustainability, MDPI, vol. 15(7), pages 1-18, April.
    2. 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.
    3. 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).
    4. Ahmadi, Seyed Ehsan & Sadeghi, Delnia & Marzband, Mousa & Abusorrah, Abdullah & Sedraoui, Khaled, 2022. "Decentralized bi-level stochastic optimization approach for multi-agent multi-energy networked micro-grids with multi-energy storage technologies," Energy, Elsevier, vol. 245(C).
    5. Mansour-Saatloo, Amin & Pezhmani, Yasin & Mirzaei, Mohammad Amin & Mohammadi-Ivatloo, Behnam & Zare, Kazem & Marzband, Mousa & Anvari-Moghaddam, Amjad, 2021. "Robust decentralized optimization of Multi-Microgrids integrated with Power-to-X technologies," Applied Energy, Elsevier, vol. 304(C).
    6. Yahia Baashar & Gamal Alkawsi & Ammar Ahmed Alkahtani & Wahidah Hashim & Rina Azlin Razali & Sieh Kiong Tiong, 2021. "Toward Blockchain Technology in the Energy Environment," Sustainability, MDPI, vol. 13(16), pages 1-20, August.
    7. 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.
    8. Mehdinejad, Mehdi & Shayanfar, Heidarali & Mohammadi-Ivatloo, Behnam, 2022. "Decentralized blockchain-based peer-to-peer energy-backed token trading for active prosumers," Energy, Elsevier, vol. 244(PA).
    9. Shengcheng Fu & Yaxin Tan & Zhiyu Xu, 2023. "Blockchain-Based Renewable Energy Certificate Trade for Low-Carbon Community of Active Energy Agents," Sustainability, MDPI, vol. 15(23), pages 1-22, November.
    10. Chathurangi Edussuriya & Umar Marikkar & Subash Wickramasinghe & Upul Jayasinghe & Janaka Alawatugoda, 2023. "Peer-to-Peer Energy Trading through Swarm Intelligent Stackelberg Game," Energies, MDPI, vol. 16(5), pages 1-17, March.
    11. Filipe Bandeiras & Álvaro Gomes & Mário Gomes & Paulo Coelho, 2023. "Exploring Energy Trading Markets in Smart Grid and Microgrid Systems and Their Implications for Sustainability in Smart Cities," Energies, MDPI, vol. 16(2), pages 1-41, January.
    12. Javier Parra-Domínguez & Esteban Sánchez & Ángel Ordóñez, 2023. "The Prosumer: A Systematic Review of the New Paradigm in Energy and Sustainable Development," Sustainability, MDPI, vol. 15(13), pages 1-44, July.
    13. Lei, Yu-Tian & Ma, Chao-Qun & Mirza, Nawazish & Ren, Yi-Shuai & Narayan, Seema Wati & Chen, Xun-Qi, 2022. "A renewable energy microgrids trading management platform based on permissioned blockchain," Energy Economics, Elsevier, vol. 115(C).
    14. Younes Zahraoui & Tarmo Korõtko & Argo Rosin & Hannes Agabus, 2023. "Market Mechanisms and Trading in Microgrid Local Electricity Markets: A Comprehensive Review," Energies, MDPI, vol. 16(5), pages 1-52, February.
    15. Liangyi Pu & Song Wang & Xiaodong Huang & Xing Liu & Yawei Shi & Huiwei Wang, 2022. "Peer-to-Peer Trading for Energy-Saving Based on Reinforcement Learning," Energies, MDPI, vol. 15(24), pages 1-16, December.
    16. Mehdinejad, Mehdi & Shayanfar, Heidarali & Mohammadi-Ivatloo, Behnam, 2022. "Peer-to-peer decentralized energy trading framework for retailers and prosumers," Applied Energy, Elsevier, vol. 308(C).
    17. Kanakadhurga, Dharmaraj & Prabaharan, Natarajan, 2022. "Peer-to-Peer trading with Demand Response using proposed smart bidding strategy," Applied Energy, Elsevier, vol. 327(C).
    18. 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).
    19. 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).
    20. 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.

    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:16:y:2023:i:8:p:3464-:d:1124101. 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.