Abstract
As the use of distributed energy resources increases, peer-to-peer (P2P) energy trading is becoming a promising way to harmonize the decarbonization and decentralization transformations in the energy sector. P2P markets give households the autonomy to make individual decisions and thus they may cooperate with each other to obtain economic benefits. However, existing studies on cooperative behaviors in P2P markets focus mostly on the electricity sector and P2P multi-energy markets are rarely studied. In fact, other energy carriers not only constitute a large part of the total energy demand, but their coupling can potentially benefit the system as well as the end-users. In this paper, we propose a P2P multi-energy market mechanism that allows peers to trade both electricity and heat. Two trading coalitions, i.e., an electricity-only trading coalition and an electricity–heat trading coalition, are predefined. The peers will join one of the coalitions based on their potential benefits and will trade energy inside the coalition. The energy markets are cleared separately per coalition and per energy carrier and hence, multi-energy markets are modeled. The proposed mechanism is a first-of-its-kind that explores the integrated effects of the multi-energy coupling and the cooperative behaviors in the P2P market. It is illustrated by a case study on a neighborhood in the Netherlands using realistic data. Results show that the mechanism is prosumer-centric as peers choose to join different coalitions at different time steps which benefit them the most. Compared to the reference scenario where there is no P2P trading, the P2P multi-energy market leads to higher economic benefits for all the peers altogether and benefits most individuals. The case study also demonstrates a benefit transfer from service-sector peers to residential peers.
Highlights
That we have reviewed the literature on market mechanisms and peers’ preferences, we focus on the literature on electricity and heat trading in P2P markets
Based on the background and the literature review, we found that a few existing studies have addressed the coupling of multiple energy carriers using P2P markets in an integrated energy systems (IES), there has been little attention on the multi-energy trading in its energy form taking into account the cooperative behaviors of the peers
We focus the work on the integrated effects of multi-energy coupling and cooperative behaviors, while evaluating the effects of storage systems is left for future studies
Summary
The energy sector is undergoing an accelerating transformation to decarbonization and decentralization. In the residential sector electricity and heat account for the predominant energy use. Domestic heating takes up 69% of the residential energy consumption while the remaining 25% is use for electric lighting and appliances [5]. As the share of distributed energy resources (such as residential solar panels) increases, there is a surge in prosumers [6], i.e., households that both produce and consume energy, as well as increased interest in peerto-peer (P2P) energy markets that allow direct energy trading between prosumers (see the comprehensive review in [7]). A P2P market enables the peers to increase their income by trading based on their diverse demand profiles, generation portfolios, and preferences [8]. As P2P markets mostly work in the distribution grid rather than the transmission grid, they help to alleviate issues such as reduced transmission network investment [9] and congestion by peak shaving [10,11]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
