Consensus-Based Approach to Peer-to-Peer Electricity Markets With Product Differentiation

By Etienne Sorin, Lucien Bobo, Pierre Pinson. IEEE Transactions on Power Systems, 2018

437 citations recorded by the source corpus.

With the sustained deployment of distributed generation capacities and the more proactive role of consumers, power systems and their operation are drifting away from a conventional top–down hierarchical structure. Electricity market structures, however, have not yet embraced that evolution. Respecting the high-dimensional, distributed and dynamic nature of modern power systems would translate to designing peer-to-peer markets or, at least, to using such an underlying decentralized structure to enable a bottom–up approach to future electricity markets. A peer-to-peer market structure based on a multi-bilateral economic dispatch (MBED) formulation is introduced, allowing for multi-bilateral trading with product differentiation, for instance based on consumer preferences. A relaxed consensus + innovation (RCI) approach is described to solve the MBED in fully decentralized manner. A set of realistic case studies and their analysis allow us to show that such peer-to-peer market structures can effectively yield market outcomes that are different from centralized market structures and optimal in terms of respecting consumers preferences while maximizing social welfare. Additionally, the RCI solving approach allows for a fully decentralized market clearing that converges with a negligible optimality gap, with a limited amount of information being shared.

Subfields: Control and Systems Engineering, Electrical and Electronic Engineering

View Paper: https://www.semanticscholar.org/paper/a55ebd1e9d57ee236764af15b033acfc91423126

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Control and Systems Engineering

In Electrical and Electronic Engineering

Citations in the corpus

State-of-the-Art Analysis and Perspectives for Peer-to-Peer Energy Trading (2020, background): “[46] is open to enable the differentiation of electricity products.”
Peer-to-Peer Energy Systems for Connected Communities: A Review of Recent Advances and Emerging Challenges (2020, background): “Further examples of P2P sharing in the decentralized market can be found in [36] and [37].”
A Motivational Game-Theoretic Approach for Peer-to-Peer Energy Trading in the Smart Grid (2019, background): “For example, in [16], the authors propose a consensus-based approach to P2P trading with product differentiation.”
Peer-to-Peer Trading in Electricity Networks: An Overview (2020, background): “In [28], the authors propose another fully decentralized market for multi-bilateral economic dispatch, where prosumers with energy demand can choose their preferences for the type of energy source, such as local or green energy, for trading.”
Exogenous Cost Allocation in Peer-to-Peer Electricity Markets (2019, background): “Preference prices as introduced in [18] seems a good candidate for this purpose.”
A Decentralized Bilateral Energy Trading System for Peer-to-Peer Electricity Markets (2020, methodology): “Although product differentiation may result in suboptimization of overall energy price, the fact that all market players can negotiate simultaneously with each other can help prices to converge to similar values [14].”
Energy Collectives: A Community and Fairness Based Approach to Future Electricity Markets (2019, background): “to single prosumer, accounting for individual trades, as in [19].”
A novel decentralized platform for peer-to-peer energy trading market with blockchain technology (2021, methodology): “While it is common practice to model and simulate P2P markets with small number of players (see [19,22]), other literature that uses larger numbers of players in their simulations present less complex P2P market designs than the one presented here.”