IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v325y2022ics0306261922011199.html
   My bibliography  Save this article

Decentralized peer-to-peer energy trading strategy in energy blockchain environment: A game-theoretic approach

Author

Listed:
  • Dong, Jingya
  • Song, Chunhe
  • Liu, Shuo
  • Yin, Huanhuan
  • Zheng, Hao
  • Li, Yuanjian

Abstract

With the proposed concept of energy blockchain, peer-to-peer (P2P) energy trading between prosumers is regarded as a potential way for future power market development. However, existing P2P energy trading often has problems such as low trading efficiency and significant communication losses. This paper presents an energy trading strategy in the blockchain environment to solve the problems of P2P energy trading. First, the type of market is determined based on energy supply and demand. Then, a Stackelberg game is used to establish a two-layer model of the leader (upper) and follower (lower) to determine the price. In addition, we propose an energy trading method based on feasible regions. The trading strategy considers the supply and demand of the market, provides an accurate energy transfer signal, and can help energy blockchain achieve better “self-sufficiency”. A case study proves the effectiveness of the strategy. Compared with the existing methods, the strategy proposed in this paper considers the market type and can promote the coordination and complementation of energy in the microgrid, and improve trading efficiency and reduce communication loss without sacrificing privacy. This study demonstrates that P2P power trading has brought benefits to prosumers, has promoted the development of the energy market, and has shown the massive potential of energy blockchain.

Suggested Citation

  • Dong, Jingya & Song, Chunhe & Liu, Shuo & Yin, Huanhuan & Zheng, Hao & Li, Yuanjian, 2022. "Decentralized peer-to-peer energy trading strategy in energy blockchain environment: A game-theoretic approach," Applied Energy, Elsevier, vol. 325(C).
    • Handle: RePEc:eee:appene:v:325:y:2022:i:c:s0306261922011199
    DOI: 10.1016/j.apenergy.2022.119852
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922011199
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2022.119852?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. Han, Dong & Zhang, Chengzhenghao & Ping, Jian & Yan, Zheng, 2020. "Smart contract architecture for decentralized energy trading and management based on blockchains," Energy, Elsevier, vol. 199(C).
    2. Dudjak, Viktorija & Neves, Diana & Alskaif, Tarek & Khadem, Shafi & Pena-Bello, Alejandro & Saggese, Pietro & Bowler, Benjamin & Andoni, Merlinda & Bertolini, Marina & Zhou, Yue & Lormeteau, Blanche &, 2021. "Impact of local energy markets integration in power systems layer: A comprehensive review," Applied Energy, Elsevier, vol. 301(C).
    3. Tang, Rui & Wang, Shengwei & Li, Hangxin, 2019. "Game theory based interactive demand side management responding to dynamic pricing in price-based demand response of smart grids," Applied Energy, Elsevier, vol. 250(C), pages 118-130.
    4. Wang, Mingshen & Mu, Yunfei & Jia, Hongjie & Wu, Jianzhong & Yu, Xiaodan & Qi, Yan, 2017. "Active power regulation for large-scale wind farms through an efficient power plant model of electric vehicles," Applied Energy, Elsevier, vol. 185(P2), pages 1673-1683.
    5. Song, Chunhe & Jing, Wei & Zeng, Peng & Yu, Haibin & Rosenberg, Catherine, 2018. "Energy consumption analysis of residential swimming pools for peak load shaving," Applied Energy, Elsevier, vol. 220(C), pages 176-191.
    6. Wang, Zibo & Yu, Xiaodan & Mu, Yunfei & Jia, Hongjie, 2020. "A distributed Peer-to-Peer energy transaction method for diversified prosumers in Urban Community Microgrid System," Applied Energy, Elsevier, vol. 260(C).
    7. Wang, Yifei & Wang, Xiuli & Shao, Chengcheng & Gong, Naiwei, 2020. "Distributed energy trading for an integrated energy system and electric vehicle charging stations: A Nash bargaining game approach," Renewable Energy, Elsevier, vol. 155(C), pages 513-530.
    8. Zhou, Yue & Wang, Chengshan & Wu, Jianzhong & Wang, Jidong & Cheng, Meng & Li, Gen, 2017. "Optimal scheduling of aggregated thermostatically controlled loads with renewable generation in the intraday electricity market," Applied Energy, Elsevier, vol. 188(C), pages 456-465.
    9. Nguyen, Su & Peng, Wei & Sokolowski, Peter & Alahakoon, Damminda & Yu, Xinghuo, 2018. "Optimizing rooftop photovoltaic distributed generation with battery storage for peer-to-peer energy trading," Applied Energy, Elsevier, vol. 228(C), pages 2567-2580.
    10. Jiang, Yanni & Zhou, Kaile & Lu, Xinhui & Yang, Shanlin, 2020. "Electricity trading pricing among prosumers with game theory-based model in energy blockchain environment," Applied Energy, Elsevier, vol. 271(C).
    11. Bhatti, Bilal Ahmad & Broadwater, Robert, 2019. "Energy trading in the distribution system using a non-model based game theoretic approach," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    12. 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.
    13. 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).
    14. Chen, Kaixuan & Lin, Jin & Song, Yonghua, 2019. "Trading strategy optimization for a prosumer in continuous double auction-based peer-to-peer market: A prediction-integration model," Applied Energy, Elsevier, vol. 242(C), pages 1121-1133.
    15. Yu, Mengmeng & Hong, Seung Ho, 2016. "Supply–demand balancing for power management in smart grid: A Stackelberg game approach," Applied Energy, Elsevier, vol. 164(C), pages 702-710.
    16. 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.
    17. Long, Chao & Wu, Jianzhong & Zhou, Yue & Jenkins, Nick, 2018. "Peer-to-peer energy sharing through a two-stage aggregated battery control in a community Microgrid," Applied Energy, Elsevier, vol. 226(C), pages 261-276.
    18. Di Silvestre, Maria Luisa & Gallo, Pierluigi & Guerrero, Josep M. & Musca, Rossano & Riva Sanseverino, Eleonora & Sciumè, Giuseppe & Vásquez, Juan C. & Zizzo, Gaetano, 2020. "Blockchain for power systems: Current trends and future applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    19. Tushar, Wayes & Saha, Tapan Kumar & Yuen, Chau & Morstyn, Thomas & McCulloch, Malcolm D. & Poor, H. Vincent & Wood, Kristin L., 2019. "A motivational game-theoretic approach for peer-to-peer energy trading in the smart grid," Applied Energy, Elsevier, vol. 243(C), pages 10-20.
    20. Song, Chunhe & Jing, Wei & Zeng, Peng & Rosenberg, Catherine, 2017. "An analysis on the energy consumption of circulating pumps of residential swimming pools for peak load management," Applied Energy, Elsevier, vol. 195(C), pages 1-12.
    21. Andoni, Merlinda & Robu, Valentin & Flynn, David & Abram, Simone & Geach, Dale & Jenkins, David & McCallum, Peter & Peacock, Andrew, 2019. "Blockchain technology in the energy sector: A systematic review of challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 100(C), pages 143-174.
    22. Lenhart, Stephanie & Araújo, Kathleen, 2021. "Microgrid decision-making by public power utilities in the United States: A critical assessment of adoption and technological profiles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    23. An, Jongbaek & Lee, Minhyun & Yeom, Seungkeun & Hong, Taehoon, 2020. "Determining the Peer-to-Peer electricity trading price and strategy for energy prosumers and consumers within a microgrid," Applied Energy, Elsevier, vol. 261(C).
    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. Qin, Meng & Zhang, Xiaojing & Li, Yameng & Badarcea, Roxana Maria, 2023. "Blockchain market and green finance: The enablers of carbon neutrality in China," Energy Economics, Elsevier, vol. 118(C).
    2. 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.
    3. Liaqat Ali & M. Imran Azim & Nabin B. Ojha & Jan Peters & Vivek Bhandari & Anand Menon & Vinod Tiwari & Jemma Green & S.M. Muyeen, 2023. "Balancing Usage Profiles and Benefitting End Users through Blockchain Based Local Energy Trading: A German Case Study," Energies, MDPI, vol. 16(17), pages 1-18, August.
    4. He, Chao & Tan, Chunqiao & Ip, W.H. & Wu, C.H., 2023. "Combating counterfeits with the Blockchain-technology-supported platform under government enforcement," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    5. Seunghwan Son & Jihyeon Oh & Deokkyu Kwon & Myeonghyun Kim & Kisung Park & Youngho Park, 2023. "A Privacy-Preserving Authentication Scheme for a Blockchain-Based Energy Trading System," Mathematics, MDPI, vol. 11(22), pages 1-19, November.
    6. Esmaeil Valipour & Ramin Nourollahi & Kamran Taghizad-Tavana & Sayyad Nojavan & As’ad Alizadeh, 2022. "Risk Assessment of Industrial Energy Hubs and Peer-to-Peer Heat and Power Transaction in the Presence of Electric Vehicles," Energies, MDPI, vol. 15(23), pages 1-24, November.
    7. Li, Junkai & Ge, Shaoyun & Xu, Zhengyang & Liu, Hong & Li, Jifeng & Wang, Chengshan & Cheng, Xueying, 2023. "A network-secure peer-to-peer trading framework for electricity-carbon integrated market among local prosumers," Applied Energy, Elsevier, vol. 335(C).

    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. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    2. 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).
    3. 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).
    4. 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.
    5. 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).
    6. Jiang, Yanni & Zhou, Kaile & Lu, Xinhui & Yang, Shanlin, 2020. "Electricity trading pricing among prosumers with game theory-based model in energy blockchain environment," Applied Energy, Elsevier, vol. 271(C).
    7. 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.
    8. Filipe Bandeiras & Álvaro Gomes & Mário Gomes & Paulo Coelho, 2023. "Exploring Energy Trading Markets in Smart Grid and Microgrid Systems and Their Implications for Sustainability in Smart Cities," Energies, MDPI, vol. 16(2), pages 1-41, January.
    9. 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).
    10. Tsao, Yu-Chung & Thanh, Vo-Van, 2021. "Toward sustainable microgrids with blockchain technology-based peer-to-peer energy trading mechanism: A fuzzy meta-heuristic approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 136(C).
    11. Zhang, Bidan & Du, Yang & Chen, Xiaoyang & Lim, Eng Gee & Jiang, Lin & Yan, Ke, 2022. "A novel adaptive penalty mechanism for Peer-to-Peer energy trading," Applied Energy, Elsevier, vol. 327(C).
    12. Meritxell Domènech Monfort & César De Jesús & Natapon Wanapinit & Niklas Hartmann, 2022. "A Review of Peer-to-Peer Energy Trading with Standard Terminology Proposal and a Techno-Economic Characterisation Matrix," Energies, MDPI, vol. 15(23), pages 1-29, November.
    13. Tushar, Wayes & Yuen, Chau & Saha, Tapan K. & Morstyn, Thomas & Chapman, Archie C. & Alam, M. Jan E. & Hanif, Sarmad & Poor, H. Vincent, 2021. "Peer-to-peer energy systems for connected communities: A review of recent advances and emerging challenges," Applied Energy, Elsevier, vol. 282(PA).
    14. 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).
    15. Bidan Zhang & Yang Du & Xiaoyang Chen & Eng Gee Lim & Lin Jiang & Ke Yan, 2022. "Potential Benefits for Residential Building with Photovoltaic Battery System Participation in Peer-to-Peer Energy Trading," Energies, MDPI, vol. 15(11), pages 1-21, May.
    16. Hui Huang & Shilin Nie & Jin Lin & Yuanyuan Wang & Jun Dong, 2020. "Optimization of Peer-to-Peer Power Trading in a Microgrid with Distributed PV and Battery Energy Storage Systems," Sustainability, MDPI, vol. 12(3), pages 1-20, January.
    17. Lyu, Cheng & Jia, Youwei & Xu, Zhao, 2021. "Fully decentralized peer-to-peer energy sharing framework for smart buildings with local battery system and aggregated electric vehicles," Applied Energy, Elsevier, vol. 299(C).
    18. Hu, Qian & Zhu, Ziqing & Bu, Siqi & Wing Chan, Ka & Li, Fangxing, 2021. "A multi-market nanogrid P2P energy and ancillary service trading paradigm: Mechanisms and implementations," Applied Energy, Elsevier, vol. 293(C).
    19. García-Muñoz, Fernando & Dávila, Sebastián & Quezada, Franco, 2023. "A Benders decomposition approach for solving a two-stage local energy market problem under uncertainty," Applied Energy, Elsevier, vol. 329(C).
    20. 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).

    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:325:y:2022:i:c:s0306261922011199. 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.