Energy Trading in Local Electricity Market With Renewables—A Contract Theoretic Approach

Amin, Uzma; Hossain, M. J.; Tushar, Wayes; Mahmud, Khizir

doi:10.1109/tii.2020.3018123

Cited by 23 publications

(14 citation statements)

References 31 publications

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“…Traditionally, aggregators are private operators that act on the energy market on behalf of a set of consumers and prosumers [41] to provide benefits by bidding/hedging on the market to achieve a lower energy purchase price, properly operating generation and storage systems, and/or implementing demandside management or demand response policies [45,25,8]. Given this purpose, most studies have traditionally focused on techniques to optimally operate the aggregate [20,3,17], usually focusing on economic indicators.…”

Section: Literature Analysismentioning

confidence: 99%

“…The methodology described in the following subsections is aimed at providing a solid understanding of the main technical and economic constraints for sizing ECs with the objective of (1) providing an optimization method for ECs based on the proposed business model, (2) evaluating advantages and drawbacks of the selected game-theoretic reward allocation functions, and (3) calculating the exit costs. In particular, as clarified in the following, these three main problems are decoupled and can be solved in a row: first (1), then (2) and finally (3). This characteristic of the problem dramatically simplifies the solving strategy and therefore considerably enhances the practical usefulness of the proposed approach.…”

Section: Structurementioning

confidence: 99%

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Optimal sizing of energy communities with fair revenue sharing and exit clauses: Value, role and business model of aggregators and users

2021

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Energy communities (ECs) are essential policy tools to meet the Energy Transition goals, as they can promote renewable energy sources, demand side management, demand response and citizen participation in energy matters. However, to fully unleash their potential, their design and scheduling requires a coordinated technical operation that the community itself may be ill-equipped to manage, in particular in view of the mutual technical and legal constraints ensuing from a coordinated design. Aggregators and Energy Service COmpanies (ESCOs) can perform this support role, but only provided that their goals are aligned to those of the community, not to incur in the agency problem.In this study, we propose a business model for aggregators of ECs, and its corresponding technical optimization problem, taking into account all crucial aspects: i) alleviating the risk of the agency problem, ii) fairly distributing the reward awarded to the EC, iii) estimating the fair payment for the aggregator services, and iv) defining appropriate exit clauses that rule what happens when a user leaves the EC. A detailed mathematical model is derived and discussed, employing several fair and theoretically-consistent reward distribution schemes, some of which are, to the best of our knowledge, proposed here for the first time. A case study is developed to quantify the value of the aggregator and compare the coordinated solution provided by the aggregator with non-coordinated configurations, numerically illustrating the impact of the reward distribution schemes.The results show that, in the case study, the aggregator enables reducing costs by 16% with respect to a baseline solution, and enables reaching 52.5% renewable share and about 46% self/shared consumption, whereas these same numbers are only 28-35% for the non-coordinated case. Our results suggest that the aggregator fair retribution is around 16-24% the added benefit produced with respect to the noncoordinated solution, and that stable reward distribution schemes such as Shapley/Core or Nucleolus are

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Section: Literature Analysismentioning

confidence: 99%

Section: Structurementioning

confidence: 99%

Optimal sizing of energy communities with fair revenue sharing and exit clauses: Value, role and business model of aggregators and users

2021

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“…Reference [33] combined blockchain, edge computing, and contract theory to propose a secure and efficient V2G energy trading framework for CPS. e authors in [34] proposed an algorithm that can be implemented in a distributed manner by trading partners to enable energy trading.…”

Section: Security In Energymentioning

confidence: 99%

Blockchain-Enhanced Fair and Efficient Energy Trading in Industrial Internet of Things

Chen

Ren

et al. 2021

Mobile Information Systems

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As the technical support of the industrial Internet of Things, blockchain technology has been widely used in energy trading, data transactions, and Internet of Vehicles. However, most of the existing energy trading models only address the transaction security and transaction privacy issues that arise in the energy trading process, ignoring the fairness of resource allocation and transaction equity in the trading process. In order to tackle those problems, an energy trading scheme called HO-TRAD is proposed in this paper to improve the efficiency of model trading while ensuring the fairness of energy trading. We propose a new trading strategy in the HO-TRAD energy trading scheme that guarantees fairness in the allocation of trading resources by introducing an entity’s active reputation value. Use smart contracts to achieve transparency and ensure fairness in the transaction process. Based on the identity verification foundation of the consortium chain, the scheme enhances the existing PBFT consensus algorithm and improves the efficiency of model transactions. The experimental simulation indicates that the scheme requires less transaction time and has higher transaction fairness and security.

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“…Various efforts have proposed innovative strategies to facilitate and simplify the involvement of this type of energy in the human-like tradition. One of the most advanced solutions to encourage citizens to rely on this particular type of energy is peer-to-peer (P2P) energy trading [1], [2]. This technology allows energy consumers (i.e., homes, vehicles, and buildings) to act as energy generators and buyers (i.e., prosumers and consumers).…”

Section: Introductionmentioning

confidence: 99%

“…Furthermore, profit is an essential feature to attract prosumers and consumers. Thus, various strategies to minimize the energy trading cost are highly needed such as price control [1], [3] and energy consumption monitoring [4]. However, two main cases are not taken into consideration.…”

Section: Introductionmentioning

confidence: 99%

FederatedGrids: Federated Learning and Blockchain-Assisted P2P Energy Sharing

Bouachir

Aloqaily

Özkasap

et al. 2022

IEEE Trans. on Green Commun. Netw.

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Peer-to-Peer (P2P) energy trading platforms envisioned energy sectors to satisfy the increasing demand for energy. The vision of this paper is not only to trade energy but also to have part of it being shared. Therefore, this paper presents FederatedGrids which is a P2P energy trading and sharing platform inside and across microgrids. Energy sharing allows exchanging energy between the categories of consumers and prosumers in return for future benefits. FederatedGrids platform uses blockchain and federated learning to enable autonomous activities while providing trust and privacy among all participants. Indeed, based on various smart contracts using federated learning, FederatedGrids calculates a prediction of the future energy production and demand allowing the system to autonomously switch between trading and sharing, and enabling the prosumers to make decisions related to their participation in the energy sharing process. Up to our knowledge, this work is the first attempt to create a hybrid energy trading and sharing platform, with the real sharing meaning, and that uses federated learning over the smart contract for energy demand prediction. The experimental results showed a 17.8% decrease in energy cost for consumers and a 76.4% decrease in load over utility grids.

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Energy Trading in Local Electricity Market With Renewables—A Contract Theoretic Approach

Cited by 23 publications

References 31 publications

Optimal sizing of energy communities with fair revenue sharing and exit clauses: Value, role and business model of aggregators and users

Optimal sizing of energy communities with fair revenue sharing and exit clauses: Value, role and business model of aggregators and users

Blockchain-Enhanced Fair and Efficient Energy Trading in Industrial Internet of Things

FederatedGrids: Federated Learning and Blockchain-Assisted P2P Energy Sharing

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