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A Two-Layer Interactive Mechanism for Peer-to-Peer Energy Trading Among Virtual Power Plants

Author

Listed:
  • Xiaoyu Lyu

    (School of Electronics and Information Engineering, Tongji University, Shanghai 201804, China)

  • Zhiyu Xu

    (School of Electronics and Information Engineering, Tongji University, Shanghai 201804, China)

  • Ning Wang

    (School of Electronics and Information Engineering, Tongji University, Shanghai 201804, China)

  • Min Fu

    (School of Electronics and Information Engineering, Tongji University, Shanghai 201804, China)

  • Weisheng Xu

    (School of Electronics and Information Engineering, Tongji University, Shanghai 201804, China
    Institute of Bigdata and Informatization, Tongji University, Shanghai 200092, China)

Abstract

This paper addresses decentralized energy trading among virtual power plants (VPPs) and proposes a peer-to-peer (P2P) mechanism, including two interactive layers: on the bottom layer, each VPP schedules/reschedules its internal distributed energy resources (DERs); and on the top layer, VPPs negotiate with each other on the trade price and quantity. The bottom-layer scheduling provides initial conditions for the top-layer negotiation, and the feedback of top-layer negotiation affects the bottom-layer rescheduling. The local scheduling/rescheduling of a VPP is formulated as a stochastic optimization problem, which takes into account the uncertainties of wind and photovoltaic power by using the scenarios-based method. In order to describe the capability of a seller VPP to generate more energy than the scheduled result, the concept of power generation potential is introduced and then considered during order initialization. The multidimensional willingness bidding strategy (MWBS) is modified and applied to the price bidding process of P2P negotiation. A 14-VPP case is studied by performing numerous computational experiments. The optimal scheduling model is effective and flexible to deal with VPPs with various configurations of DERs. The parallel price bidding with MWBS is adaptive to market situations and efficient due to its rapid convergence. It is revealed that VPPs can obtain higher profit by participating in P2P energy trading than from traditional centralized trading, and the proposed mechanism of two-layer “interactivity” can further increase VPPs’ benefits compared to its “forward” counterpart. The impacts of VPP configuration and VPP number are also studied. It is demonstrated that the proposed mechanism is applicable to most cases where VPPs manage some controllable DERs.

Suggested Citation

  • Xiaoyu Lyu & Zhiyu Xu & Ning Wang & Min Fu & Weisheng Xu, 2019. "A Two-Layer Interactive Mechanism for Peer-to-Peer Energy Trading Among Virtual Power Plants," Energies, MDPI, vol. 12(19), pages 1-28, September.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:19:p:3628-:d:269952
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    References listed on IDEAS

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    2. 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).
    3. 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).
    4. 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.

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