Transforming Energy Networks via Peer to Peer Energy Trading: Potential of Game Theoretic Approaches

By Wayes Tushar, Chau Yuen, Hamed, Mohsenian-Rad, T. Saha, H. Vincent, Poor, Kristin L. Wood. IEEE Signal Processing Magazine, 2018

389 citations recorded by the source corpus.

Peer-to-peer (P2P) energy trading has emerged as a next-generation energy-management mechanism for the smart grid that enables each prosumer (i.e., an energy consumer who also produces electricity) of the network to participate in energy trading with other prosumers and the grid. This poses a significant challenge in terms of modeling the decisionmaking process of the participants' conflicting interests and motivating prosumers to participate in energy trading and cooperate, if necessary, in achieving different energy-management goals. Therefore, such a decisionmaking process needs to be built on solid mathematical and signal processing principles that can ensure an efficient operation of the electric power grid. This article provides an overview of the use of game-theoretic approaches for P2P energy trading as a feasible and effective means of energy management. Various game- and auction-theoretic approaches are discussed by following a systematic classification to provide information on the importance of game theory for smart energy research. This article also focuses on the key features of P2P energy trading and gives an introduction to an existing P2P testbed. Furthermore, the article gives specific game- and auction-theoretic models that have recently been used in P2P energy trading and discusses important findings arising from these approaches.

Subfields: Control and Systems Engineering, Electrical and Electronic Engineering, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/5d07199a825a33c96e020b97207a6df7aceab26e

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Citations in the corpus

A Motivational Game-Theoretic Approach for Peer-to-Peer Energy Trading in the Smart Grid (2019, background): “Peer-to-peer (P2P) trading [10] has emerged as a new energy management paradigm that allows energy from one prosumer to go to another prosumer without any direct influence of a central controller [11] and is expected to address the limitation of existing techniques.”
Peer-to-Peer Energy Systems for Connected Communities: A Review of Recent Advances and Emerging Challenges (2020, background): “The performance of the P2P sharing system can be monitored and evaluated by connecting smart meters in those connection points [17].”
Energy Peer-to-Peer Trading in Virtual Microgrids in Smart Grids: A Game-Theoretic Approach (2020, background): “Noncooperative game theoretic approaches including the Nash game, Stackelberg game and others to study energy trading is widely reported [9], [15], [25]–[30].”
Peer-to-Peer Trading in Electricity Networks: An Overview (2020, background): “For example, The EMS of a rational prosumer may always buy energy in the microgrid market when the price per unit of energy falls below its maximum price threshold [13].”
Local flexibility markets: Literature review on concepts, models and clearing methods (2020, background): “Game theory-based models Game theory is a mathematical tool to analyze strategies in competitive situations where the outcome of a participant’s choice of action depends on the actions of other participants [117].”
State-of-the-Art Analysis and Perspectives for Peer-to-Peer Energy Trading (2020, methodology): “[69] stated that it is vital to fit P2P energy trading into current energy policy, so that it will be clear what market designs are allowed, how the taxes and fees are distributed, and what the relationship is between the P2P energy trading markets and conventional electricity markets.”
Peer-to-Peer Energy Trading in a Prosumer-Based Community Microgrid: A Game-Theoretic Model (2019, background): “It poses the challenge of modeling the decision-making process of each participant for the greater benefit of the entire community microgrid while considering human factors such as rationality, motivation, and environmental friendliness [21].”
User behavior in a real-world peer-to-peer electricity market (2020, background): “In contrast to the limited empirical findings on user behavior in P2P energy markets, there is a growing body of literature on individuals’ motivations for becoming members of P2P energy communities (partly) based on game theoretical approaches (for an overview please refer to [42]).”
A novel decentralized platform for peer-to-peer energy trading market with blockchain technology (2021, background): “[10] explores the potential benefits of implementing game and auction theoretic models in P2P energy trading settings.”