Peer-to-Peer Energy Trading for Residential Prosumers With Photovoltaic and Battery Storage Systems

Abstract

The popularization of solar generation enables residential households to supply their loads and trade the surplus energy through residential peer-to-peer (P2P) energy trading market. Facing the increasing complexity of the market structure and decision-making strategies, this article proposes a P2P energy trading model for residential households, and the objective is to help the centralized market coordinator optimize the benefit of participants under such a P2P market. To this end, a new mathematical model, including the rules for buying and selling energy, is presented. In this model, a supply function bidding mechanism is formulated to match the power supply imbalance and calculate the market-clearing price. An optimization problem is formulated to identify the optimal strategies for energy buying and selling, which consists of two parts: the first part is to maximize the social welfare; the second part is to minimize the unfair benefit distribution that participants can gain through P2P energy trading. The case study based on the real data for four different household categories has revealed that households can achieve 26.38% net cost reduction, and the proposed fair benefit distribution function also can fairly allocate the benefit by enforcing households' benefit variance indexes at a low level.