IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v285y2021ics0306261920317694.html
   My bibliography  Save this article

Multi-level trading community formation and hybrid trading network construction in local energy market

Author

Listed:
  • Ma, Li
  • Wang, Lingfeng
  • Liu, Zhaoxi

Abstract

Community-based trading structures play important roles in the development of local energy market (LEM). In this paper, a decentralized optimization model for the trading community formation is proposed based on the Lp-box consensus alternating direction method of multipliers (ADMM), where the network features of the physical systems are explicitly represented by power loss and wheeling charging in local and regional trading level, respectively. The framework for multi-level hybrid trading network construction is introduced involving three different trading modes, i.e, traditional trading mode, agent-based trading mode and peer-to-peer (P2P) trading mode, and two hybrid trading networks, namely Traditional trading & Agent based trading (TA) and Traditional trading & Peer-to-peer trading & Agent based trading (TPA), are developed based on the trading community formation results. The corresponding profit allocation schemes are also presented for the TA and TPA hybrid trading networks respectively. A set of complex network indices is applied to analyze the network characteristics of the TA and TPA trading topologies, while the link entropy (LE) index is used to evaluate the edge significance of the communication relationship network in maintaining global connectivity. Finally, the proposed models are validated via a test system with six IEEE 33-bus systems connected through the IEEE 9-bus system. The results show that the agent-based strategy can benefit all entities compared with the SDR and contribution-based strategies, while the REO (renewable energy output)-first strategy proposed for P2P pairing is more stimulating for the selling entities with larger REOs than distance-first mode. In addition, the entities’ prices in the bi-level trading are significantly improved compared with those of the single-level trading both for agent-based trading and P2P trading. The complex index values of TA are all slightly greater than those of TPA, and a feeder with fewer managers is likely to have a larger LE value. The proposed models for trading community formation and trading network formation provide significant means for the development of sustainable LEMs.

Suggested Citation

  • Ma, Li & Wang, Lingfeng & Liu, Zhaoxi, 2021. "Multi-level trading community formation and hybrid trading network construction in local energy market," Applied Energy, Elsevier, vol. 285(C).
    • Handle: RePEc:eee:appene:v:285:y:2021:i:c:s0306261920317694
    DOI: 10.1016/j.apenergy.2020.116399
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261920317694
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2020.116399?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Schleicher-Tappeser, Ruggero, 2012. "How renewables will change electricity markets in the next five years," Energy Policy, Elsevier, vol. 48(C), pages 64-75.
    2. Foumani, Mehdi & Smith-Miles, Kate, 2019. "The impact of various carbon reduction policies on green flowshop scheduling," Applied Energy, Elsevier, vol. 249(C), pages 300-315.
    3. Sousa, Tiago & Soares, Tiago & Pinson, Pierre & Moret, Fabio & Baroche, Thomas & Sorin, Etienne, 2019. "Peer-to-peer and community-based markets: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 367-378.
    4. Thomas Morstyn & Niall Farrell & Sarah J. Darby & Malcolm D. McCulloch, 2018. "Using peer-to-peer energy-trading platforms to incentivize prosumers to form federated power plants," Nature Energy, Nature, vol. 3(2), pages 94-101, February.
    5. Pagani, Giuliano Andrea & Aiello, Marco, 2013. "The Power Grid as a complex network: A survey," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(11), pages 2688-2700.
    6. Alam, Muhammad Raisul & St-Hilaire, Marc & Kunz, Thomas, 2019. "Peer-to-peer energy trading among smart homes," Applied Energy, Elsevier, vol. 238(C), pages 1434-1443.
    7. Mengelkamp, Esther & Gärttner, Johannes & Rock, Kerstin & Kessler, Scott & Orsini, Lawrence & Weinhardt, Christof, 2018. "Designing microgrid energy markets," Applied Energy, Elsevier, vol. 210(C), pages 870-880.
    8. Yael Parag & Benjamin K. Sovacool, 2016. "Electricity market design for the prosumer era," Nature Energy, Nature, vol. 1(4), pages 1-6, April.
    9. Zhou, Yue & Wu, Jianzhong & Long, Chao, 2018. "Evaluation of peer-to-peer energy sharing mechanisms based on a multiagent simulation framework," Applied Energy, Elsevier, vol. 222(C), pages 993-1022.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fioriti, Davide & Frangioni, Antonio & Poli, Davide, 2021. "Optimal sizing of energy communities with fair revenue sharing and exit clauses: Value, role and business model of aggregators and users," Applied Energy, Elsevier, vol. 299(C).
    2. Wu, Qiong & Xie, Zhun & Ren, Hongbo & Li, Qifen & Yang, Yongwen, 2022. "Optimal trading strategies for multi-energy microgrid cluster considering demand response under different trading modes: A comparison study," Energy, Elsevier, vol. 254(PC).
    3. Aguado, José A. & Paredes, Ángel, 2023. "Coordinated and decentralized trading of flexibility products in Inter-DSO Local Electricity Markets via ADMM," Applied Energy, Elsevier, vol. 337(C).
    4. Zachary Michael Isaac Gould & Vikram Mohanty & Georg Reichard & Walid Saad & Tripp Shealy & Susan Day, 2023. "A Mycorrhizal Model for Transactive Solar Energy Markets with Battery Storage," Energies, MDPI, vol. 16(10), pages 1-19, May.
    5. Wang, Longze & Jiao, Shucen & Xie, Yu & Xia, Shiwei & Zhang, Delong & Zhang, Yan & Li, Meicheng, 2022. "Two-way dynamic pricing mechanism of hydrogen filling stations in electric-hydrogen coupling system enhanced by blockchain," Energy, Elsevier, vol. 239(PC).
    6. Wanessa Guedes & Lucas Deotti & Bruno Dias & Tiago Soares & Leonardo Willer de Oliveira, 2022. "Community Energy Markets with Battery Energy Storage Systems: A General Modeling with Applications," Energies, MDPI, vol. 15(20), pages 1-22, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhou, Yuekuan & Lund, Peter D., 2023. "Peer-to-peer energy sharing and trading of renewable energy in smart communities ─ trading pricing models, decision-making and agent-based collaboration," Renewable Energy, Elsevier, vol. 207(C), pages 177-193.
    2. Soto, Esteban A. & Bosman, Lisa B. & Wollega, Ebisa & Leon-Salas, Walter D., 2021. "Peer-to-peer energy trading: A review of the literature," Applied Energy, Elsevier, vol. 283(C).
    3. Milad Afzalan & Farrokh Jazizadeh, 2021. "Quantification of Demand-Supply Balancing Capacity among Prosumers and Consumers: Community Self-Sufficiency Assessment for Energy Trading," Energies, MDPI, vol. 14(14), pages 1-21, July.
    4. Siripha Junlakarn & Phimsupha Kokchang & Kulyos Audomvongseree, 2022. "Drivers and Challenges of Peer-to-Peer Energy Trading Development in Thailand," Energies, MDPI, vol. 15(3), pages 1-25, February.
    5. Zhou, Yue & Wu, Jianzhong & Song, Guanyu & Long, Chao, 2020. "Framework design and optimal bidding strategy for ancillary service provision from a peer-to-peer energy trading community," Applied Energy, Elsevier, vol. 278(C).
    6. Arnob Das & Susmita Datta Peu & Md. Abdul Mannan Akanda & Abu Reza Md. Towfiqul Islam, 2023. "Peer-to-Peer Energy Trading Pricing Mechanisms: Towards a Comprehensive Analysis of Energy and Network Service Pricing (NSP) Mechanisms to Get Sustainable Enviro-Economical Energy Sector," Energies, MDPI, vol. 16(5), pages 1-27, February.
    7. Ableitner, Liliane & Tiefenbeck, Verena & Meeuw, Arne & Wörner, Anselma & Fleisch, Elgar & Wortmann, Felix, 2020. "User behavior in a real-world peer-to-peer electricity market," Applied Energy, Elsevier, vol. 270(C).
    8. Kobashi, Takuro & Yoshida, Takahiro & Yamagata, Yoshiki & Naito, Katsuhiko & Pfenninger, Stefan & Say, Kelvin & Takeda, Yasuhiro & Ahl, Amanda & Yarime, Masaru & Hara, Keishiro, 2020. "On the potential of “Photovoltaics + Electric vehicles” for deep decarbonization of Kyoto’s power systems: Techno-economic-social considerations," Applied Energy, Elsevier, vol. 275(C).
    9. Maarten Wolsink, 2020. "Framing in Renewable Energy Policies: A Glossary," Energies, MDPI, vol. 13(11), pages 1-31, June.
    10. Yuki Matsuda & Yuto Yamazaki & Hiromu Oki & Yasuhiro Takeda & Daishi Sagawa & Kenji Tanaka, 2021. "Demonstration of Blockchain Based Peer to Peer Energy Trading System with Real-Life Used PHEV and HEMS Charge Control," Energies, MDPI, vol. 14(22), pages 1-12, November.
    11. Esmat, Ayman & de Vos, Martijn & Ghiassi-Farrokhfal, Yashar & Palensky, Peter & Epema, Dick, 2021. "A novel decentralized platform for peer-to-peer energy trading market with blockchain technology," Applied Energy, Elsevier, vol. 282(PA).
    12. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    13. Guerrero, Jaysson & Gebbran, Daniel & Mhanna, Sleiman & Chapman, Archie C. & Verbič, Gregor, 2020. "Towards a transactive energy system for integration of distributed energy resources: Home energy management, distributed optimal power flow, and peer-to-peer energy trading," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    14. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    15. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K., 2020. "Investigating the impact of P2P trading on power losses in grid-connected networks with prosumers," Applied Energy, Elsevier, vol. 263(C).
    16. Neves, Diana & Scott, Ian & Silva, Carlos A., 2020. "Peer-to-peer energy trading potential: An assessment for the residential sector under different technology and tariff availabilities," Energy, Elsevier, vol. 205(C).
    17. Zheng, Boshen & Wei, Wei & Chen, Yue & Wu, Qiuwei & Mei, Shengwei, 2022. "A peer-to-peer energy trading market embedded with residential shared energy storage units," Applied Energy, Elsevier, vol. 308(C).
    18. Mehri Arsoon, Milad & Moghaddas-Tafreshi, Seyed Masoud, 2020. "Peer-to-peer energy bartering for the resilience response enhancement of networked microgrids," Applied Energy, Elsevier, vol. 261(C).
    19. Zade, Michel & Lumpp, Sebastian Dirk & Tzscheutschler, Peter & Wagner, Ulrich, 2022. "Satisfying user preferences in community-based local energy markets — Auction-based clearing approaches," Applied Energy, Elsevier, vol. 306(PA).
    20. Gržanić, M. & Capuder, T. & Zhang, N. & Huang, W., 2022. "Prosumers as active market participants: A systematic review of evolution of opportunities, models and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:285:y:2021:i:c:s0306261920317694. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.