Abstract
As an innovative paradigm for electric power systems with a high penetration of distributed energy resources, peer-to-peer (P2P) energy trading enables direct energy trading between end customers, which is able to facilitate local power and energy balance and potentially support the operation of bulk power systems. In this paper, a framework was proposed to enable ancillary service provision from a P2P energy trading community, creating additional value for both customers in the community and power systems. Specifically, an ancillary service provision mechanism was designed along with P2P energy trading and residual balancing mechanisms to enable the power utility to obtain ancillary service from customers in a P2P energy trading community. Furthermore, the optimal bidding strategy of customers was figured out to maximize their benefits in the proposed mechanisms. Simulation studies were conducted based on a residential community in Great Britain. The results show that the proposed ancillary service mechanism can enable the power utility to obtain a significant or required amount of ancillary services of different types. The proposed mechanisms and optimal bidding strategy can achieve Pareto improvement for the revenue of each customer and result in significantly higher social welfare for the whole community. It is also revealed that increasing ancillary service prices and installation rate of electric vehicles can increase the total amount of ancillary service provision and thus bring higher revenue for the customers in the community. By contrast, increasing installation of PV systems does not necessarily increase the amount of service provision.
Highlights
Conventional electric power systems are characterized by central ized management and unidirectional power flow
The capital flows from customers to electricity retailers, who further distribute the revenues among transmission system operators (TSOs), distribution network operators (DNOs) and generators [2]
The net load pro files calculated in Section 3.2 have been agreed to be satisfied by other customers through the P2P energy trading agreements made in the continuous double auction (CDA) and/or by the power utility through the P2G residual balancing agree ments made in the residual balancing mechanism
Summary
Conventional electric power systems are characterized by central ized management and unidirectional power flow. Applied Energy 278 (2020) 115671 and industrial projects on P2P energy trading, most existing work fo cuses on enabling and facilitating local energy trading itself, but not on manipulating the way of P2P energy trading to make the participants to provide ancillary services to support the operation of power systems In some studies such as [6], [37] and [38], it is revealed that P2P energy trading can facilitate local balance of power and energy and reduce the peak loads, potentially being beneficial to the power systems. Morstyn et al in [39], self-organizing prosumers in P2P energy trading can further provide ancillary services for power systems This concept is termed as ‘federated power plant’, which has the potential to ‘address social, institutional and economic issues faced by top-down strategies for coordinating virtual power plants, while unlocking additional value for P2P energy trading’ [39]. We use the general term ‘customers’, which can include both prosumers and consumers
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