Abstract
The active participation of small-scale prosumers and consumers with demand-response capability and renewable resources can be a potential solution to the environmental issues and flexibility-related challenges. A local peer-to-peer market is proposed to exploit the maximum flexibility potential of prosumers. In this local market, network users can trade with each other as well as the grid. The proposed trading model includes two levels to consider both the democracy and the profitability of energy trading. At the first level, the model considers the trading preferences of each player to respect the peers’ choices. The second level matches the rest of the bids and offers of the local buyers and sellers aiming to maximize the social welfare of all of the players participating in the local market. Our proposed local market is implemented for a test system consisting of fifteen residential players, and the results are compared to other trading models through different comparison criteria such as social-welfare of all players and the net cost of each individual player from consuming electricity. Simulation results for the case study demonstrate that the proposed local market model can still be profitable and liquid while respecting the players’ trading preferences and choices.
Highlights
PAPER CONTRIBUTION, ASSUMPTIONS, AND ORGANIZATION This paper proposes a novel local P2P trading model for prosumers and consumers under the supervision of a local market operator (LMO)
This paper proposed a new local market structure for peerto-peer trading that incentivizes small-scale prosumers and consumers to play a more active role in energy markets
The proposed model consists of two levels
Summary
In the work proposed by [34], the matching of small-scale players’ bids and offers are based on the local network flexibility needs It ignores the trading preferences of the peers. The existing LM and P2P trading model structures mainly suffer from the following limitations: 1- The game theory-based approaches need the contribution and cooperation of rational participants in the process of matching bids with offers, which may not be a valid assumption. In order to engage small-scale customers to participate in local energy trading, first, prosumers and consumers should be allowed to choose their trading partners freely. It respects the preference of peers to choose their trading partners and their buying/selling prices It seeks profitable energy trading in the LM because it aims to maximize the social welfare of the LM players. The LM clearing mechanism matches bidding blocks with the offering blocks, according to different offered and bided prices
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