Abstract
In a smart grid, each residential unit with renewable energy sources can trade energy with others for profit. Buyers with insufficient energy meet their demand by buying the required energy from other houses with surplus energy. However, they will not be willing to engage in the trade if it is not beneficial. With the aim of improving participants' profits and reducing the impacts on the grid, we study a peer-to-peer (P2P) energy trading system among prosumers using a double auction-based game theoretic approach, where the buyer adjusts the amount of energy to buy according to varying electricity price in order to maximize benefit, the auctioneer controls the game, and the seller does not participate in the game but finally achieves the maximum social welfare. The proposed method not only benefits the participants but also hides their information, such as their bids and asks, for privacy. We further study individual rationality and incentive compatibility properties in the proposed method's auction process at the game's unique Stackelberg equilibrium. For practical applicability, we implement our proposed energy trading system using blockchain technology to show the feasibility of real-time P2P trading. Finally, simulation results under different scenarios demonstrate the effectiveness of the proposed method.
Highlights
Electricity trading has changed in recent years with the advent of smart grid technologies for the following reasons
We have presented a real-time P2P energy trading system via a game-theoretic model, in which residential units (RUs) can buy or sell energy in a manner that is profitable to both sides rather than trading energy with the main grid
Using the double auction based approach, we have designed a whole system which consists of the winner determination, payment, and energy allocation rules of the auction
Summary
Electricity trading has changed in recent years with the advent of smart grid technologies for the following reasons. In [17], the authors proposed a great approach to protecting confidential user information that uses an iterative double auction in the microgrid They maximize the social welfare, as buyers aim to optimize their energy usage utility and payment amount whereas sellers maximize their energy consumption and reimbursement. This approach has many limitations, including its significant energy consumption, the scalability of the number of transactions per second (tps), privacy concerns regarding use of a public ledger, and singlepurpose application All of these factors are very important when attempting to apply blockchain to a P2P energy trading system since the P2P energy trading system must support a large number of prosumers, ensure user privacy, and provide various functions.
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