IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1903.11047.html
   My bibliography  Save this paper

Estimation of the Shapley Value of a Peer-to-Peer Energy Sharing Game using Coalitional Stratified Random Sampling

Author

Listed:
  • Liyang Han
  • Thomas Morstyn
  • Malcolm McCulloch

Abstract

Various peer-to-peer energy markets have emerged in recent years in an attempt to manage distributed energy resources in a more efficient way. One of the main challenges these models face is how to create and allocate incentives to participants. Cooperative game theory offers a methodology to financially reward prosumers based on their contributions made to the local energy coalition using the Shapley value, but its high computational complexity limits the size of the game. This paper explores a stratified sampling method proposed in existing literature for Shapley value estimation, and modifies the method for a peer-to-peer cooperative game to improve its scalability. Finally, selected case studies verify the effectiveness of the proposed coalitional stratified random sampling method and demonstrate results from large games.

Suggested Citation

  • Liyang Han & Thomas Morstyn & Malcolm McCulloch, 2019. "Estimation of the Shapley Value of a Peer-to-Peer Energy Sharing Game using Coalitional Stratified Random Sampling," Papers 1903.11047, arXiv.org.
    • Handle: RePEc:arx:papers:1903.11047
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1903.11047
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert J. Weber, 1977. "Probabilistic Values for Games," Cowles Foundation Discussion Papers 471R, Cowles Foundation for Research in Economics, Yale University.
    2. Yael Parag & Benjamin K. Sovacool, 2016. "Electricity market design for the prosumer era," Nature Energy, Nature, vol. 1(4), pages 1-6, April.
    3. Klinge Jacobsen, Henrik & Schröder, Sascha Thorsten, 2012. "Curtailment of renewable generation: Economic optimality and incentives," Energy Policy, Elsevier, vol. 49(C), pages 663-675.
    4. Zhou, Yue & Wu, Jianzhong & Long, Chao, 2018. "Evaluation of peer-to-peer energy sharing mechanisms based on a multiagent simulation framework," Applied Energy, Elsevier, vol. 222(C), pages 993-1022.
    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. Cremers, Sho & Robu, Valentin & Zhang, Peter & Andoni, Merlinda & Norbu, Sonam & Flynn, David, 2023. "Efficient methods for approximating the Shapley value for asset sharing in energy communities," Applied Energy, Elsevier, vol. 331(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. 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.
    2. Ma, Li & Wang, Lingfeng & Liu, Zhaoxi, 2021. "Multi-level trading community formation and hybrid trading network construction in local energy market," Applied Energy, Elsevier, vol. 285(C).
    3. Yildizbasi, Abdullah, 2021. "Blockchain and renewable energy: Integration challenges in circular economy era," Renewable Energy, Elsevier, vol. 176(C), pages 183-197.
    4. Liyang Han & Thomas Morstyn & Constance Crozier & Malcolm McCulloch, 2019. "Improving the Scalability of a Prosumer Cooperative Game with K-Means Clustering," Papers 1903.10965, arXiv.org, revised Jul 2020.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. Tsaousoglou, Georgios & Giraldo, Juan S. & Paterakis, Nikolaos G., 2022. "Market Mechanisms for Local Electricity Markets: A review of models, solution concepts and algorithmic techniques," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    10. Yang, Peiwen & Fang, Debin & Wang, Shuyi, 2022. "Optimal trading mechanism for prosumer-centric local energy markets considering deviation assessment," Applied Energy, Elsevier, vol. 325(C).
    11. 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.
    12. Lurian Pires Klein & Aleksandra Krivoglazova & Luisa Matos & Jorge Landeck & Manuel de Azevedo, 2019. "A Novel Peer-To-Peer Energy Sharing Business Model for the Portuguese Energy Market," Energies, MDPI, vol. 13(1), pages 1-20, December.
    13. 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).
    14. Steven Beattie & Wai-Kin (Victor) Chan & Zixuan Wei & Zhibin Zhu, 2022. "Simulation Analysis of a Double Auction-Based Local Energy Market in Socio-Economic Context," Sustainability, MDPI, vol. 14(13), pages 1-25, June.
    15. Wu, Jiechen & Hu, Junjie & Ai, Xin & Zhang, Zhan & Hu, Huanyu, 2019. "Multi-time scale energy management of electric vehicle model-based prosumers by using virtual battery model," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    16. Aikaterini Forouli & Emmanouil A. Bakirtzis & Georgios Papazoglou & Konstantinos Oureilidis & Vasileios Gkountis & Luisa Candido & Eloi Delgado Ferrer & Pandelis Biskas, 2021. "Assessment of Demand Side Flexibility in European Electricity Markets: A Country Level Review," Energies, MDPI, vol. 14(8), pages 1-23, April.
    17. 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).
    18. Oyewo, Ayobami Solomon & Solomon, A.A. & Bogdanov, Dmitrii & Aghahosseini, Arman & Mensah, Theophilus Nii Odai & Ram, Manish & Breyer, Christian, 2021. "Just transition towards defossilised energy systems for developing economies: A case study of Ethiopia," Renewable Energy, Elsevier, vol. 176(C), pages 346-365.
    19. Carattini, Stefano & Gillingham, Kenneth & Meng, Xiangyu & Yoeli, Erez, 2024. "Peer-to-peer solar and social rewards: Evidence from a field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 340-370.
    20. Chaouachi, Aymen & Bompard, Ettore & Fulli, Gianluca & Masera, Marcelo & De Gennaro, Michele & Paffumi, Elena, 2016. "Assessment framework for EV and PV synergies in emerging distribution systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 719-728.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:arx:papers:1903.11047. 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.