Introducing user preferences for peer-to-peer electricity trading through stochastic multi-objective optimization

Abstract

Peer-to-peer electricity markets are dedicated markets that enable the direct participation of small electricity end-users in energy trading activities. They are seen as a promising alternative that can empower end-users and accelerate the energy transition, by researchers, business developers, and legislators. Moreover, they can include environmental, social, or altruistic preferences that are relevant to end-users, in addition to the economic perspective. Such preferences are sometimes included in the modeling of P2P markets in the existing literature, but the assumptions behind them are rarely validated in practice. To investigate the desired attributes and preferences of end-users to participate in P2P markets, an online survey including a discrete choice experiment was conducted in The Netherlands The results of the survey are used to design a P2P electricity market with product differentiation. The participants in the market are residential end-users that are equipped with a home energy management system that can control some of the household appliances and automate the decision-making process for participation in the market. To facilitate this, a multi-objective stochastic optimization model is presented that incorporates results from the discrete choice experiment and real smart-meter measurements. The case study results demonstrate user preferences’ influence on market outcomes.