Peer-to-peer Energy Trading for Smart Energy Communities

Abstract

Local energy communities (LECs) comprise prosumers cooperating for the satisfaction of their energy needs. Prosumers are community members that can both produce and consume energy. LECs facilitate the integration of renewables and provide the potential for reducing energy costs. Peer-to-peer (P2P) energy trading allows direct energy exchange between members of a local energy community. The surplus of energy from renewables is traded to meet a local consumption demand so that costs and revenues stay within community avoiding transmission losses and stress on the grid. This study presents a design of the peer-to-peer market for local energy communities where prosumers are rational and self-interested agents acting selfishly in an attempt to optimize their trades. The market design aims to ensure self-consumption of locally produced energy and provides incentives for balancing supply and demand within community. The proposed design is investigated in comparison with existing ones using theoretical analysis and simulations. The obtained results are promising and reveal advantageous properties of the proposed P2P energy trading.

A Review of Peer-to-Peer Energy Trading with Standard Terminology Proposal and a Techno-Economic Characterisation Matrix

“…Under the topic of DLTs applied to the energy field, a novel proposal of Blockchain ET under demurrage and "Enertoks" as a cryptocurrency utilizing Mixed Complementary Problems and game theory for the simulation is presented in [40]. Additionally, in line with past work, an incentive mechanism based on the usage of a virtual currency "NRG-X-Change", a game-theory model under a Nash Equilibrium is presented in [50]. A two-layer multi-agent system-based model with Blockchain for test case study modelling 50 to 300 participants is modelled with the Matlab optimization tool in [43].…”

“…The results of the case study show a cost reduction. Denysiuk, et al In [50], authors developed a market mechanism designed to incentivize the production and self-consumption of renewable energies produced locally. The main characteristic of this project is the assumption that the agents act in their self-interest when optimizing energy usage.…”

Scalable multi-agent local energy trading — Meeting regulatory compliance and validation in the Cardiff grid

“…But, by far the most used popular in this landscape has been ADMM. The closer related work with regard to energy coordination networks and ADMM for LEC's optimisation has been presented in [33,22,4,25,23]. However, such previous studies either model households using abstract models and/or do not consider energy storage and/or lack of any realistic validation and most importantly, all of them, do not model the current legislation environment as we do in this paper.…”

“…on a small community of 15 prosumers. Interestingly, the objective of [4] is to prove the effectiveness of the approach in a multi-flow setting (considering not only electricity but also heating) with realistic scenarios from a neighborhood in Woerden, Netherlands. However, the design in [4] is restricted to communities with one mutual electricity supplier contract and does not generalise to the case in which each community member may chose its own supplier.…”

“…Interestingly, the objective of [4] is to prove the effectiveness of the approach in a multi-flow setting (considering not only electricity but also heating) with realistic scenarios from a neighborhood in Woerden, Netherlands. However, the design in [4] is restricted to communities with one mutual electricity supplier contract and does not generalise to the case in which each community member may chose its own supplier. The work in [25] tackled the issue of non-convexity of discrete households loads and power equations and proposed several approaches layered on the top of ADMM to handle discrete variables whereas keeping the agent local problems convex.…”