A novel payment scheme for trading renewable energy in smart grid

Abstract

With the increasing diffusion of renewable energy producers in electricity grids, new policies and tariff systems have been recently developed. This work revolves around a particular support system named NRG-X-Change, which makes use of a virtual currency called NRGcoin. The NRG-X-Change system is based on two NRGcoin payment functions: one to establish the price at which prosumers are rewarded for their energy production, and the other to establish the price at which consumers pay the energy they consume. The detailed analysis provided in this paper identifies some important issues in these payment functions limiting their applicability, namely: (i) not taking congestions into account; (ii) encouraging curtailment of renewable energy production; and (iii) not ensuring that the prosumers consume their own energy before selling it. This work addresses these limitations by proposing two novel payment functions whose advantageous properties are demonstrated by theoretical analysis and in simulation using real data coming from an existing grid. CCS CONCEPTS • Hardware → Power networks; Smart grid.

Peer-to-peer Energy Trading for Smart Energy Communities

“…In this section, we show two important facts. First, the NRG-X-Change incentive system and the one described by (Lilliu et al, 2019b) do not guarantee the existence of a NE in the game described in Section 3. Second, we will see that a NE always exists with the functions we have defined in the end of Section 4, as expected by the known theoretical results.…”

“…in their work, (Lilliu et al, 2019b) have addressed the first three points by creating functions which describe rewards for energy production and costs for energy consumption respectively. The scope of this work is to create new functions which address all of the four points mentioned above.…”

“…Also, production is rewarded more when local production and consumption are similar, in order to encourage balance between them. However, this system has several flaws, which the paper from (Lilliu et al, 2019b) has pointed out and addressed by creating one new function for rewarding energy production and one for determining costs for energy consumption. These functions will be described now.…”

“…1. As mentioned by (Lilliu et al, 2019b) the expression for q i is more complicated to write, although it may be simplified if we consider different cases. Since at least one between x and y is equal to zero, substituting Eq.…”

“…In other words, we want to actively discourage scenarios where the energy consumption or production is excessive. Therefore, the purpose of this work is to create a new incentive mechanism based on NRG-X-Change and the use of NRGcoin using as a baseline the works in (Mihaylov et al, 2014) and (Lilliu et al, 2019b), but further improving the critical points of the mechanism and studying its behavior in a context with selfish agents. The contributions of this paper are therefore the following:…”