Day‐ahead continuous double auction‐based peer‐to‐peer energy trading platform incorporating trading losses and network utilisation fee

Abstract

Integration of distributed energy resources, such as photovoltaic solar (PV), introduces new opportunities to establish local energy market frameworks to improve renewable energy utilisation in residential sectors. Such peer‐to‐peer (P2P) energy trading refers to a local market structure where customers (and prosumers) interact to share excess PV generation to enhance the individual and community social welfare. In this work, a day‐ahead continuous double auction (CDA)‐based P2P market structure considering network losses and network utilisation fees was designed. Day‐ahead PV energy is modelled using fractional integral polynomials and the output is forecasted using an autoregressive integrated moving average model for each market interval. Based on the customer load and excess PV energy, the CDA market is cleared using a bid/ask matching mechanism. The performance of the P2P market was evaluated by computing different welfare metrics while analysing the effect of network constraints. The results show that the designed CDA‐based P2P market structure increases the social welfare of all participants by an average of 17.75% compared to the baseline for the presented cases. Moreover, the impact of the forecasting error between the day‐ahead and real‐time market was also quantified.

A Review of Peer-to-Peer Energy Trading Markets: Enabling Models and Technologies

“…Such auctions are very popularly used in P2P energy trading applications. For example, the authors in [98] designed a continuous double auction market while considering utilisation fees as functions of electrical distances and trading losses for taking into account network constraints. Periodic double auction allows the bidding only during a specified market clearing period [99].…”

Social Factors in P2P Energy Trading Using Hedonic Games

“…The approach uses a stochastic optimization algorithm based on a non-cooperative game-theory model for planning prosumers' consumption/production while minimizing costs, preserving privacy, and considering their personal preferences. A ahead continuous double auction P2P energy trading solution is proposed by Liaquat et al [49]. The general objective is to maximize social welfare in a dynamic P2P market.…”

Comparative Analysis of Peer-to-Peer PV Trading Strategies under the Influence of Network Constraints with Prosumer Sensitivity towards Network Coefficients

“…A congestion management for the LV P2P networks was suggested in [27] using the marginal prices of the network. The formulation in [28] models the individual behaviors of the market players of the P2P platform by using the user-centric behavior models while developing the network constraints for the P2P market. However, the implementation in [28] did not consider the optimal P2P clearance for the participants and the sensitivity of the prosumers towards the network coefficients.…”

“…• We suggested quadratic trading loss and network-impedance-based utilization fee models for the P2P markets to incorporate the network constraints; • We designed a reluctance-based sensitivity model for the prosumers towards the network constraints of the system to highlight the trading pattern of the participants under heavy distribution losses/a network fee; • We extended the P2P platform presented in [28] to incorporate the GT approach while considering the preference of the individuals and a sensitivity analysis of network parameters.…”

“…Equilibrium matching: EM sorts the bid values of the customers in descending order, whereas the ask prices for the prosumers are arranged in an ascending manner. P2P orders will be matched if the bid value is greater than or equal to the ask price [28]. This process will continue for all the P2P orders until the market interval terminates.…”