Abstract
This study presents peer-to-peer (P2P) energy transaction mechanisms to maximize social welfare considering the uncertainty and profit fairness of the players. The P2P energy transaction problem is formulated as a P2P energy transaction pair matching and the determination of the P2P transaction price. To solve the problem, the optimal condition to maximize social welfare is determined using stochastic P2P energy transaction performance analysis based on the uncertainty characteristics. The analysis results show that social welfare is maximized to match the producer and consumer pairs that have similar demand characteristics; the P2P transaction price balances the profit fairness between the pair. Using these results, two centralized P2P energy transaction mechanisms are proposed by modifying the optimization problem. Moreover, a decentralized P2P energy transaction mechanism that operates in a distributed manner is suggested with the operational signal flow for the implementation of the mechanism. The simulation results show that the centralized and decentralized mechanisms have near optimal performance, with less than a 0.5% and 1% optimal gap compared to the optimal solution that requires perfect information including uncertainty, respectively. However, the decentralized mechanism is less computationally complex and uses less information than the centralized mechanisms; consequently, it can alleviate the operational burden and security and privacy problems. In addition, the results show that the performance of P2P energy transaction is related to the relative demand ratio between the producer and consumer. The optimal condition and results suggest a guide to the design of the P2P energy transaction.
Highlights
CONTRIBUTION This study focuses on the P2P energy transaction mechanism while considering uncertainty and profit fairness
In this study, we focused on the P2P energy transaction problem for social welfare maximization while considering the profit fairness between transaction pairs
The analysis showed that the P2P energy transaction problem can be decomposed into two parts: pair matching to maximize the pair profit and profit balancing between the matched pair
Summary
Morstyn and McCulloch formulated a multi-class energy management problem to minimize the total cost considering power flow and prosumer constraints They proposed a distributed price-directed optimization mechanism using an alternating direction method of multipliers [10]. Khorasany et al proposed a primal-dual gradient method based on bilateral P2P energy trading considering line flow constraints to avoid overloaded or congested lines in the system [18] These works showed that the P2P energy transaction problem could be used by centralized and decentralized mechanisms to solve the optimization problem. Research into P2P energy transactions considering profit fairness among prosumers through profit balancing is required To fill this void in the research gap, this study deals with the P2P energy transaction problem including uncertainty and fairness problems and uses the proposed centralized and decentralized P2P energy transaction mechanisms to solve the problem.
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