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A peer-to-peer energy trading market embedded with residential shared energy storage units

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  • Zheng, Boshen
  • Wei, Wei
  • Chen, Yue
  • Wu, Qiuwei
  • Mei, Shengwei

Abstract

The high penetration of distributed energy resources with local renewable energy consumption facilitates the emergence of peer-to-peer (P2P) energy trading, where a peer can share excessive energy with local peers. P2P energy trading is expected to be a promising business model in the future transactive energy market. Influenced by the sharing economy principle, shared energy storage(SES) is investigated to reduce the costly initial investment and improve the utilization rate of storage devices. Given the context, this paper proposes an equilibrium model of a P2P energy trading market, considering the deployment of shared energy storage in the residential consumer-side. The market equilibrium problem consists of two interwoven games. Considering the benefit conflicts between energy sellers and buyers in P2P energy trading, the P2P transaction between peers can be described as a non-cooperative game. Considering the limited SES capacity resources, the competition among SES users can be viewed as a generalized Nash equilibrium problem. These two games in the P2P market interact with each other and can be summarized as a holistic equilibrium problem, in which the P2P transaction price is endogenously determined and storage capacity is allocated. The market equilibrium problem can be solved based on Karush-Kuhn-Tucker (KKT) optimality conditions and linearization techniques, finally cast as a mixed-integer linear program. Numerical simulation demonstrates that P2P energy trading benefits all participants and the introduction of shared energy storage can further reduce energy costs.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:appene:v:308:y:2022:i:c:s0306261921016366
    DOI: 10.1016/j.apenergy.2021.118400
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    3. Carson Duan, 2023. "A State-of-the-Art Review of Sharing Economy Business Models and a Forecast of Future Research Directions for Sustainable Development: A Bibliometric Analysis Approach," Sustainability, MDPI, vol. 15(5), pages 1-37, March.
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    5. Jiahao Chen & Bing Sun & Yuan Zeng & Ruipeng Jing & Shimeng Dong & Jingran Wang, 2023. "An Optimal Scheduling Method of Shared Energy Storage System Considering Distribution Network Operation Risk," Energies, MDPI, vol. 16(5), pages 1-24, March.
    6. Xia, Yuanxing & Xu, Qingshan & Chen, Lu & Du, Pengwei, 2022. "The flexible roles of distributed energy storages in peer-to-peer transactive energy market: A state-of-the-art review," Applied Energy, Elsevier, vol. 327(C).
    7. Wang, Juan & Zheng, Junjun & Yu, Liukai & Goh, Mark & Tang, Yunying & Huang, Yongchao, 2023. "Distributed Reputation-Distance iterative auction system for Peer-To-Peer power trading," Applied Energy, Elsevier, vol. 345(C).
    8. Helder Pereira & Bruno Ribeiro & Luis Gomes & Zita Vale, 2022. "Smart Grid Ecosystem Modeling Using a Novel Framework for Heterogenous Agent Communities," Sustainability, MDPI, vol. 14(23), pages 1-20, November.
    9. João Mello & Cristina de Lorenzo & Fco. Alberto Campos & José Villar, 2023. "Pricing and Simulating Energy Transactions in Energy Communities," Energies, MDPI, vol. 16(4), pages 1-22, February.
    10. Jun Dong & Xihao Dou & Dongran Liu & Aruhan Bao & Dongxue Wang & Yunzhou Zhang, 2023. "Energy Trading Strategy of Distributed Energy Resources Aggregator in Day-Ahead Market Considering Risk Preference Behaviors," Energies, MDPI, vol. 16(4), pages 1-27, February.
    11. Maarten Evens & Patricia Ercoli & Alessia Arteconi, 2023. "Blockchain-Enabled Microgrids: Toward Peer-to-Peer Energy Trading and Flexible Demand Management," Energies, MDPI, vol. 16(18), pages 1-24, September.
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    13. Yap, Kah Yung & Chin, Hon Huin & Klemeš, Jiří Jaromír, 2023. "Blockchain technology for distributed generation: A review of current development, challenges and future prospect," Renewable and Sustainable Energy Reviews, Elsevier, vol. 175(C).

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