Pricing and Operation Strategy for Peer-to-Peer Energy Trading Using Distribution System Usage Charge and Game Theoretic Model

Abstract

This paper proposes a game-theoretic model for peer-to-peer (P2P) energy trading between a consumer and a prosumer living in a community. The proposed real-time pricing model is based on the Stackelberg game, and the consumer and prosumer are the follower and leader in the game, respectively. Therefore, the prosumer first proposes the trading price and then proposes the trading quantity based on the optimal scheduling of the energy storage system considering the determined trading price, load profile, P2P trading demand, etc. Subsequently, the consumer decides to purchase quantity by adjusting his/her load usage according to the trading price and quantity suggested by the prosumer. In this regard, a power flow analysis was conducted based on the participants' bidding strategy to analyze the changes in the electricity flow in a distribution system in which P2P energy trading occurs. Consequently, changes in power flow from the point of common coupling before and after P2P trading were verified, and the voltage stability of each bus was confirmed. In addition, the distribution system usage charge was calculated to reduce the operational burden of the distribution system operator and suggest an operation strategy that can enable P2P energy trading.

Blockchain-Based Local Energy Market Enabling P2P Trading: An Australian Collated Case Study on Energy Users, Retailers and Utilities

“…As for the distribution utilities, an integrated usersdistribution utility approach is applied in [33] to maintain the power grid constraints, that include power loss [34]; congestion [35]; voltage limit [36]; and thermal resistance [37], in the LEM. The power grid usage charge is included in the P2P trading model in [38] to help the distribution utility maintain the financial part of the network. The authors in [39] also acknowledge the importance of the presence of energy retailers in practical LEMs.…”

Priority-based market clearing model for off-grid P2P energy trading

“…Yan et al [19] combines multiple microgrids to form a Stackelberg game-based energy trading with power network constraint consideration. In the works of Zhong et al [20] and Jin et al [21], the power network usage fee is [20] also focuses on social welfare maximization and fairness of profit allocation are in the pricing mechanism. Community-based energy trading is introduced in [13] which focuses on cost-saving and proves the impact of the implementation of energy trading.…”

On the perspective of grid architecture model with high TSO‐DSO interaction

“…P2P can be used in local electricity market models incorporating both energy trading and uncertainty trading simultaneously to match the forecast power with demand having time flexibility and the uncertain power [48,49]. P2P transaction auction models and the deployment of platforms buildings will emerge economic and control mechanisms that allows the dynamic balance of supply and demand across the electrical infrastructure [50], with optimised real‐time scheduling and trading prices [51].…”