Distributed energy resources (DERs), such as rooftop solar panels, are growing rapidly and are reshaping power systems. To promote DERs, feed-in-tariff (FIT) is usually adopted by utilities to pay DER owners certain fixed rates for supplying energy to the grid. An alternative to FIT is a market based approach; i.e., consumers and DER owners trade energy in an auction-based peer-to-peer (P2P) market, and the rates are determined by a market clearing process. However, the complexities in sucha market and agents' bounded rationality may invalidate many well-established theories on auction design and hinder market development. To address this issue, we propose an automated bidding framework in a repeated auction based on multi-armed bandit learning, which aims to minimize each bidder's cumulative regret. Numerical results indicate convergence of such a multi-agent learning game to a steady-state. For comparison purpose, we apply the framework to three different auction designs to realize a P2P market.
Distributed energy resources (DERs), such as rooftop solar panels, are growing rapidly and are reshaping power systems. To promote DERs, feed-in-tariff (FIT) is usually adopted by utilities to pay DER owners certain fixed rates for supplying energy to the grid. An alternative to FIT is a market-based approach; that is, consumers and DER owners trade energy in an auction-based peer-to-peer (P2P) market, and the rates are determined based on supply and demand. However, the auction complexity and market participants' bounded rationality may invalidate many well-established theories on auction des…
In this paper, we investigate an energy cost minimization problem for prosumers participating in peer-to-peer energy trading. Due to (i) uncertainties caused by renewable energy generation and consumption, (ii) difficulties in developing an accurate and efficient energy trading model, and (iii) the need to satisfy distribution network constraints, it is challenging for prosumers to obtain optimal energy trading decisions that minimize their individual energy costs. To address the challenge, we first formulate the above problem as a Markov decision process and propose a multi-agent deep determi…
Utilizing distributed renewable and energy storage resources via peer-to-peer (P2P) energy trading has long been touted as a solution to improve energy system's resilience and sustainability. Consumers and prosumers (those who have energy generation resources), however, do not have expertise to engage in repeated P2P trading, and the zero-marginal costs of renewables present challenges in determining fair market prices. To address these issues, we propose a multi-agent reinforcement learning (MARL) framework to help automate consumers' bidding and management of their solar PV and energy storag…
Integration of distributed energy resources (DERs) at a residential level has given way to the development of a self-sufficient energy-resilient system and peer-to-peer (P2P) energy trading at a community level. Several researchers have developed models to implement energy trading in the P2P network with DERs that enables prosumers to avail cost benefits. However, the impact of DERs and P2P energy network on the system's resilience is not evaluated with a quantifiable measure. In this work, we use the percolation threshold as a measure to quantify energy resilience, which can be computed using…
This paper studies the optimal energy management in a group of dwellings having micro fuel cell combined heat and power systems. To increase the self-sufficiency and resilience of such local community, a peer-to-peer energy trading system between dwellings is proposed in which output powers from fuel cells working under their rated powers can be sold to those already reach their rated outputs but still lack powers. The arising optimization problem from this optimal peer-to-peer energy trading system is non-convex due to the nonlinear dependence of power and heat efficiencies on fuel cell outpu…
Several autonomous energy management and peer-to-peer trading mechanisms for future energy markets have been recently proposed based on optimization and game theory. In this paper, we study the impact of trading prices on the outcome of these market designs for energy-hub networks. We prove that, for a generic choice of trading prices, autonomous peer-to-peer trading is always network-wide beneficial but not necessarily individually beneficial for each hub. Therefore, we leverage hierarchical game theory to formalize the problem of designing locally-beneficial and network-wide fair peer-to-pee…
This paper investigates the problem of bidirectional energy exchange between electric vehicles (EVs) and road lanes embedded with wireless power transfer technologies called wireless charging-discharging lanes (WCDLs). As such, EVs could provide better services to the grid, especially for balancing the supply-demand, while bringing convenience for EV users, because no cables and EV stops are needed. To enable this EV--WCDL energy exchange, a novel decentralized peer-to-peer (P2P) trading mechanism is proposed, in which EVs directly negotiate with a WCDL to reach consensus on the energy price a…
Peer-to-peer trading is a next-generation energy management technique that economically benefits proactive consumers (prosumers) transacting their energy as goods and services. At the same time, peer-to-peer energy trading is also expected to help the grid by reducing peak demand, lowering reserve requirements, and curtailing network loss. However, large-scale deployment of peer-to-peer trading in electricity networks poses a number of challenges in modeling transactions in both the virtual and physical layers of the network. As such, this article provides a comprehensive review of the state-o…
This paper demonstrates the value of power hardware-in-the-loop (PHIL) testing for the study of peer-to-peer (P2P) energy trading. P2P has emerged as a promising candidate for coordinating large numbers of distributed energy resources (DER) that pose a risk to network operations if left unmanaged. The existing literature has so far relied on pure software simulations to study DER and distribution networks within this context. This requires the development of simplified models for complex components due to the computational limitations involved. Issues that arise through the operation of physic…
This paper studies social cooperation backed peer-to-peer energy trading technique by which prosumers can decide how they can use their batteries opportunistically for participating in the peer-to-peer trading. The objective is to achieve a solution in which the ultimate beneficiaries are the prosumers, i.e., a prosumer-centric solution. To do so, a coalition formation game is designed, which enables a prosumer to compare its benefit of participating in the peer-to-peer trading with and without using its battery and thus, allows the prosumer to form suitable social coalition groups with other …
Device to device communication has prevailed as an issue for small cell networks. Here we have implemented a new scheme that allows us to improve spectral capabilities of mobiles communicating with each other (peer to peer network) for downlink cellular network. Previously the spectral capabilities were handled by Reverse Iterative combinatorial auction mechanism, where the cellular uses used to bid for d2d links. We have made a comparison between Reverse Iterative combinatorial Auction (R-ICA) and New Auction method on the basis of plots on sum rate over SINR and number of d2d users.
In this paper, we propose a bilateral peer-to-peer (P2P) energy trading scheme for residential prosumers with a simplified entry to the market. We formulate the market as an assignment game, a special class of coalitional games. For solving the resulting decision problem, we design a bilateral negotiation mechanism that enables matched buyer-seller pairs to reach a consensus on a set of ``stable" and ``fair" trading contracts. The proposed negotiation process can be executed on possibly time-varying communication networks with virtually minimal information requirements that in turn preserves p…
This paper proposes a peer-to-peer energy trading scheme that can help the centralized power system to reduce the total electricity demand of its customers at the peak hour. To do so, a cooperative Stackelberg game is formulated, in which the centralized power system acts as the leader that needs to decide on a price at the peak demand period to incentivize prosumers to not seeking any energy from it. The prosumers, on the other hand, act as followers and respond to the leader's decision by forming suitable coalitions with neighboring prosumers in order to participate in P2P energy trading to …
In this paper, we propose a bilateral peer-to-peer (P2P) energy trading scheme under single-contract and multi-contract market setups, both as an assignment game, and a special class of coalitional games. {The proposed market formulation allows for efficient computation of a market equilibrium while keeping the desired economic properties offered by the coalitional games. Furthermore, our market model allows buyers to have heterogeneous preferences (product differentiation) over the energy sellers, which can be economic, social, or environmental. To address the problem of scalability in coalit…
Efforts to utilize 100% renewable energy in community microgrids require new approaches to energy markets and transactions to efficiently address periods of scarce energy supply. In this paper we contribute to the promising approach of peer-to-peer (P2P) energy trading in two main ways: analysis of a centralized, welfare-maximizing economic dispatch that characterizes optimal price and allocations, and a novel P2P system for negotiating energy trades that yields physically feasible and at least weakly Pareto-optimal outcomes. Our main results are 1) that optimal pricing is insufficient to indu…
In future distribution grids, prosumers (i.e., energy consumers with storage and/or production capabilities) will trade energy with each other and with the main grid. To ensure an efficient and safe operation of energy trading, in this paper, we formulate a peer-to-peer energy market of prosumers as a generalized aggregative game, in which a network operator is only responsible for the operational constraints of the system. We design a distributed market-clearing mechanism with convergence guarantee to an economically-efficient and operationally-safe configuration (i.e., a variational generali…
Transforming Energy Networks via Peer to Peer Energy Trading: Potential of Game Theoretic Approaches
University of Queensland（昆士兰大学）；Singapore University of Technology and Design (SUTD)（新加坡科技设计大学）；University of California at Riverside（加州大学河滨分校）；Princeton University（普林斯顿大学）
Despite extensive research in the past five years and several successfully completed and on-going pilot projects, regulators are still reluctant to implement peer-to-peer trading at a large-scale in today's electricity market. The reason could partly be attributed to the perceived disadvantage of current market participants like retailers due to their exclusion from market participation - a fundamental property of decentralised peer-to-peer trading. As a consequence, recently, there has been growing pressure from energy service providers in favour of retailers' participation in peer-to-peer tr…
The emerging paradigm of interconnected microgrids advocates energy trading or sharing among multiple microgrids. It helps make full use of the temporal availability of energy and diversity in operational costs when meeting various energy loads. However, energy trading might not completely absorb excess renewable energy. A multi-energy management framework including fuel cell vehicles, energy storage, combined heat and power system, and renewable energy is proposed, and the characteristics and scheduling arrangements of fuel cell vehicles are considered to further improve the local absorption …
This paper studies the applicability of peer-to-peer (P2P) energy trading in a grid-tied network. The main objectives are to understand the impact of the financial P2P energy trading on the network operation, and thus demonstrate the importance of taking various issues related to power network into account while designing a practical P2P trading scheme. To do so, a simple mechanism is developed for energy trading among prosumers without considering any network constraints, as done by many existing studies. Once the trading parameters, such as the energy traded by each prosumer in the P2P marke…
Peer-to-peer (P2P) energy systems have recently emerged as a promising approach for integrating renewable and distributed energy resources into energy grids to reduce carbon emissions. However, market-clearing energy price and amounts, resulted from solving optimal P2P energy management problems, might not be satisfactory for peers/agents. This is because peers/agents in practice do not know how to set their cost function parameters when participating into P2P energy markets. To resolve such drawback, this paper proposes a novel approach, in which an inverse optimization problem is formulated …
This paper studies the optimal clearing problem for prosumers in peer-to-peer (P2P) energy markets. It is proved that if no trade weights are enforced and the communication structure between successfully traded peers is connected, then the optimal clearing price and total traded powers in P2P market are the same with that in the pool-based market. However, if such communication structure is unconnected, then the P2P market is clustered into smaller P2P markets. If the trade weights are imposed, then the derived P2P market solutions can be significantly changed. Next, a novel decentralized opti…
Energy Trading between microgrids Individual Cost Minimization and Social Welfare Maximization
Shanghai Jiao Tong University（上海交通大学）；Collaborative Innovation Center for Advanced Ship and Deep-Sea Exploration（先进船舶与深海探测协同创新中心）；Key Laboratory of System Control and Information Processing, Ministry of Education of China（教育部系统控制与信息处理重点实验室）；Shanghai Electric Group Co., Ltd Central Academe（上海电气集团中央研究院）
Continuous integration of renewable energy sources into power networks is causing a paradigm shift in energy generation and distribution with regards to trading and control; the intermittent nature of renewable sources affects pricing of energy sold or purchased; the networks are subject to operational constraints, voltage limits at each node, rated capacities for the power electronic devices, current bounds for distribution lines. These economic and technical constraints coupled with intermittent renewable injection may pose a threat to system stability and performance. We propose a novel hol…
An Electricity Market with Reactive Power Trading: Incorporating Dynamic Operating Envelopes
Australian National University（澳大利亚国立大学）；Monash University（莫纳什大学）；University of Melbourne（墨尔本大学）；The University of Sydney（悉尼大学）；University of California, Berkeley（加利福尼亚大学伯克利分校）
Energy management of buildings is of vital importance for the urban low-carbon transition. This paper proposes a sustainable energy cooperation framework for the building community by communication-efficient peer-to-peer transaction. Firstly, the energy cooperation of buildings is formulated as a social welfare maximization problem, in which buildings may directly trade energy with neighbors. In addition, considering privacy concerns and communication losses arisen in peer-to-peer energy trading, a communication-failure-robust distributed algorithm is developed to achieve the optimal energy di…
This paper proposes a peer to peer (P2P), blockchain based energy trading market platform for residential communities with the objective of reducing overall community peak demand and household electricity bills. Smart homes within the community place energy bids for its available distributed energy resources (DERs) for each discrete trading period during a day, and a double auction mechanism is used to clear the market and compute the market clearing price (MCP). The marketplace is implemented on a permissioned blockchain infrastructure, where bids are stored to the immutable ledger and smart …
With the sustained attention on carbon neutrality, the personal carbon trading (PCT) scheme has been embraced as an auspicious paradigm for scaling down carbon emissions. To facilitate the simultaneous clearance of energy and carbon allowance inside the energy community while hedging against uncertainty, a joint trading framework is proposed in this article. The energy trading is implemented in a peer-to-peer (P2P) manner without the intervention of a central operator, and the uncertainty trading is materialized through procuring reserve of conventional generators and flexibility of users. Und…
Owing to the decreasing costs of distributed energy resources (DERs) as well as decarbonization policies, power systems are undergoing a modernization process. The large deployment of DERs together with internet of things (IoT) devices provide a platform for peer-to-peer (P2P) energy trading in active distribution networks. However, P2P energy trading with IoT devices have driven the grid more vulnerable to cyber-physical threats. To this end, in this paper, a resilience-oriented P2P energy exchange model is developed considering three phase unbalanced distribution systems. In addition, variou…
Max Planck Institute for Research on Collective Goods（马克斯·普朗克集体福利研究所）；Center for Operations Research and Econometrics, UCLouvain（鲁汶大学运营研究与计量经济学中心）；University of Maryland, College Park（马里兰大学帕克分校）
