Peer-to-peer (P2P) electricity trading in distribution systems of the future

In recent years, power systems have undergone changes in technology and definition of the associated stakeholders. With the increase in distributed renewable generation and small-to medium-sized consumers starting to actively participate on the supply side, a suitable incorporation of decentralized agents into the power system is required. A promising scheme to support this shift is given by local electricity markets. These provide an opportunity to extend the liberal wholesale markets for electrical power found in Europe and the United States to the communal level. Compared to these more established markets, local electricity markets, however, neither have few practical implementations nor standardized frameworks. In order to fill this research gap and classify the types of local electricity markets, the presented paper therefore starts with the challenges that these markets attempt to solve. This is then extended to an analysis of the theoretical and practical background with a focus on these derived challenges. The theoretical background is provided in the form of an introduction to state-of-the-art models and the associated literature, whereas the practical background is provided in form of a summary of ongoing and recent projects on local electricity markets. As a result, this paper presents a foundation for future research and projects attempting to approach the here presented challenges in distribution of generation, integration of demand response, decentralization of markets and legal and social issues via local electricity markets.

show abstract

“…With a similar objective, Ref. [170] shows AC power flows results that validate the viability of the trading outputs. Alternatively, Ref.…”

Section: ) Literature Focus: Information and Communication Technologiesmentioning

confidence: 80%

“…In a more recent study, Ref. [170] also employs sealed quotations, but applied to an electric vehicle focused trading platform. The paper proposes blockchain as the communication layer for direct monetary transactions between charging and discharging vehicles.…”

Section: ) Literature Focus: Information and Communication Technologiesmentioning

confidence: 99%

Developments and Challenges in Local Electricity Markets: A Comprehensive Review

et al. 2021

View full text Add to dashboard Cite

show abstract

“…Three market mechanisms are considered to define the parking lot local market price: Grid-to-vehicle (G2V), mid-market price (MMP), and auction-based price (APP) [18][19][20][21]. The G2V mode is the conventional base case for charging.…”

Section: Parking Lot Energy Trading Mechanismmentioning

confidence: 99%

Design and Implementation of a Blockchain-Based Energy Trading Platform for Electric Vehicles in Smart Campus Parking Lots

et al. 2019

View full text Add to dashboard Cite

This paper proposes a blockchain-based energy trading platform for electric vehicles in smart campus parking lots. Smart parking lots are smart places capable of supporting both parking and charging services for electric vehicles. The electric vehicle owner may want to charge energy at a low price and sell it during peak hours at a higher price. The proposed system architecture consists of two layers: the physical infrastructure layer and the cyber infrastructure layer. The physical infrastructure layer represents all of the physical components located in the campus distribution power system, such as electric vehicles charging stations, transformers, and electric feeders, while the cyber infrastructure layer supports the operation of the physical infrastructure layer and enables selling/buying energy among participants. Blockchain technology is a promising candidate to facilitate auditability and traceability of energy transactions among participants. A real case of a parking lot with a realistic parking pattern in a university campus is considered. The system consists of a university control center and various parking lot local controllers (PLLCs). The PLLC broadcasts the electricity demand and the grid price, and each electric vehicle owner decides whether to charge/discharge based on their benefits. The proposed system is implemented on Hyperledger Fabric. Participants, assets, transactions, and smart contracts are defined and discussed. Two scenarios are considered. The first scenario represents energy trading between electric vehicles as sellers and the PLLC as a buyer, while the second scenario involves energy trading between electric vehicles as buyers and the PLLC as a seller. The proposed platform provides profits for participants, as well as enables balancing for the university load demand locally.

show abstract

“…The application of P2P makes it possible for individual consumers to become prosumers and to share their excess energy with neighbors [2][3][4]. They can achieve a win-win situation by looking for a reasonable trading price and by making a deal in a seamless way [5,6]. P2P energy trading empowers customers to trade electricity at a P2P marginal price that is cheaper than the time of use (TOU) price and higher than feed-in tariffs (FIT), respectively, which provides attractive savings for buyers and profit for sellers.…”

Section: Introductionmentioning

confidence: 99%

Optimization of Peer-to-Peer Power Trading in a Microgrid with Distributed PV and Battery Energy Storage Systems

et al. 2020

View full text Add to dashboard Cite

Integrating distributed generation (DG) into the main grid is a challenge for the safety and stability of the grid. The application of peer-to-peer (P2P) technology in microgrids with distributed generation is expected to facilitate increased self-consumption of distributed and renewable energy, and the rise of prosumers’ monetary benefits. A P2P energy trading model in microgrids with photovoltaic (PV) distributed generation and battery energy storage systems (BESSs) is proposed in this paper. We additionally designed a P2P electricity trading mechanism based on coalition game theory. A simulation framework of this model is presented which assumed a local community with 30 households under comprehensive constraints encompassing a customer load profile, PV system, BESSs, market signals including feed-in tariffs, and retail prices. Firstly, individual customers can post orders (purchasing orders or selling orders) and exchange information in a P2P energy trading market. Secondly, the microgrid operator can validate the orders based on how to achieve the minimum overall energy consumption in microgrids and set reasonable real-time purchasing and selling prices for P2P energy transactions. Thirdly, the orders can be automatically conducted and completed at the designed optimal price. This mechanism can be a practical solution motivating individual customers to participate in P2P electricity trading, assist with electricity cost reduction, benefit from electricity supply increases, and help the grid operators to make the most economically and socially friendly decisions.

show abstract

Peer-to-peer (P2P) electricity trading in distribution systems of the future

Cited by 126 publications

References 10 publications

Developments and Challenges in Local Electricity Markets: A Comprehensive Review

Developments and Challenges in Local Electricity Markets: A Comprehensive Review

Design and Implementation of a Blockchain-Based Energy Trading Platform for Electric Vehicles in Smart Campus Parking Lots

Optimization of Peer-to-Peer Power Trading in a Microgrid with Distributed PV and Battery Energy Storage Systems

Contact Info

Product

Resources

About