Peer-to-Peer Energy Trading in a Prosumer-Based Community Microgrid: A Game-Theoretic Model

By Amrit Paudel, Kalpesh Chaudhari, C. Long, Hoay Beng Gooi. IEEE transactions on industrial electronics (1982. Print), 2019

616 citations recorded by the source corpus.

This paper proposes a novel game-theoretic model for peer-to-peer (P2P) energy trading among the prosumers in a community. The buyers can adjust the energy consumption behavior based on the price and quantity of the energy offered by the sellers. There exist two separate competitions during the trading process: 1) price competition among the sellers; and 2) seller selection competition among the buyers. The price competition among the sellers is modeled as a noncooperative game. The evolutionary game theory is used to model the dynamics of the buyers for selecting sellers. Moreover, an M-leader and N-follower Stackelberg game approach is used to model the interaction between buyers and sellers. Two iterative algorithms are proposed for the implementation of the games such that an equilibrium state exists in each of the games. The proposed method is applied to a small community microgrid with photo-voltaic and energy storage systems. Simulation results show the convergence of the algorithms and the effectiveness of the proposed model to handle P2P energy trading. The results also show that P2P energy trading provides significant financial and technical benefits to the community, and it is emerging as an alternative to cost-intensive energy storage systems.

Subfields: Control and Systems Engineering, Electrical and Electronic Engineering

View Paper: https://www.semanticscholar.org/paper/eca19af9acaee5a4c0e86090dafdd80e89be5fd9

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Citations in the corpus

Peer-to-Peer Energy Systems for Connected Communities: A Review of Recent Advances and Emerging Challenges (2020, background): “Community market X X [19], [31], [38]–[40]”
Local flexibility markets: Literature review on concepts, models and clearing methods (2020, methodology): “Game theory-based models Noncooperative game theory [10], [118], [119], [120]-[125] Cooperative game theory [126]-[129] Auction theory-based models [131]-[134] Simulation models [12], [77], [138]-[143] 4.”
Energy Peer-to-Peer Trading in Virtual Microgrids in Smart Grids: A Game-Theoretic Approach (2020, methodology): “In [31], Stackelberg game was applied to optimize energy trading among multiple prosumers and multiple consumers.”
Energy Crowdsourcing and Peer-to-Peer Energy Trading in Blockchain-Enabled Smart Grids (2019, methodology): “For example, game theoretical approaches are adopted to achieve real-time pricing in [15], [26], and [27].”
State-of-the-Art Analysis and Perspectives for Peer-to-Peer Energy Trading (2020, methodology): “[56] proposed an iterative pricing mechanism based on the non-cooperative game, evolutionary game, and Stackelberg game theories for P2P energy trading in a community microgrid.”
Peer-to-Peer Trading in Electricity Networks: An Overview (2020, methodology): “Indeed, to facilitate such a trading mechanism, interaction among participating prosumers is the key [30], [39], [40], [41].”
A Decentralized Bilateral Energy Trading System for Peer-to-Peer Electricity Markets (2020, background): “[20], where a game theoretic approach is employed to model interaction between sellers and buyers.”
A Motivational Game-Theoretic Approach for Peer-to-Peer Energy Trading in the Smart Grid (2019, methodology): “An evolutionary game-theoretic approach and a Stackelberg game are used in [31] for modeling the dynamics of buyers and seller to capture their interactions in a P2P energy network.”