IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v290y2024ics0360544223035144.html
   My bibliography  Save this article

Power flow traceable P2P electricity market segmentation and cost allocation

Author

Listed:
  • Lou, Chengwei
  • Yang, Jin
  • Vega Fuentes, Eduardo
  • Zhou, Yue
  • Min, Liang
  • Yu, James
  • Meena, Nand Kishor

Abstract

This study explores peer-to-peer (P2P) electricity trading, emphasizing not just the export and consumption, but also the feasible physical supply of electricity and the use of distribution network assets. Building on a transaction-oriented dynamic power flow tracing model, a novel P2P market architecture is proposed. This architecture integrates the electricity market with the power network, considering technical constraints, network losses, and asset usage. The network is segmented into potential markets using second-order cone programming (SOCP), with an optimization problem introduced for loss-allocation. This problem merges network physical analysis and variable outputs from distributed energy resources (DERs). A graph-based P2P electricity trading model is designed to determine optimal transaction cost allocation and maximize benefits for both DERs and consumers. A case study on a modified IEEE 33-node test feeder substantiates the benefits of this market structure, demonstrating increased revenues for DERs and reduced bills for consumers compared to traditional feed-in-tariffs.

Suggested Citation

  • Lou, Chengwei & Yang, Jin & Vega Fuentes, Eduardo & Zhou, Yue & Min, Liang & Yu, James & Meena, Nand Kishor, 2024. "Power flow traceable P2P electricity market segmentation and cost allocation," Energy, Elsevier, vol. 290(C).
    • Handle: RePEc:eee:energy:v:290:y:2024:i:c:s0360544223035144
    DOI: 10.1016/j.energy.2023.130120
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223035144
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2023.130120?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. Deirdre N. McCloskey & Stephen T. Ziliak, 1996. "The Standard Error of Regressions," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 97-114, March.
    2. Yael Parag & Benjamin K. Sovacool, 2016. "Electricity market design for the prosumer era," Nature Energy, Nature, vol. 1(4), pages 1-6, April.
    3. Ye, Liang-Cheng & Rodrigues, João F.D. & Lin, Hai Xiang, 2017. "Analysis of feed-in tariff policies for solar photovoltaic in China 2011–2016," Applied Energy, Elsevier, vol. 203(C), pages 496-505.
    4. Cherrington, R. & Goodship, V. & Longfield, A. & Kirwan, K., 2013. "The feed-in tariff in the UK: A case study focus on domestic photovoltaic systems," Renewable Energy, Elsevier, vol. 50(C), pages 421-426.
    Full references (including those not matched with items on IDEAS)

    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. Bessi, Alessandro & Guidolin, Mariangela & Manfredi, Piero, 2021. "The role of gas on future perspectives of renewable energy diffusion: Bridging technology or lock-in?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).
    2. Collier, Samuel H.C. & House, Jo I. & Connor, Peter M. & Harris, Richard, 2023. "Distributed local energy: Assessing the determinants of domestic-scale solar photovoltaic uptake at the local level across England and Wales," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    3. Rachel G. Childers, 2011. "Being One'S Own Boss: How Does Risk Fit In?," The American Economist, Sage Publications, vol. 56(1), pages 48-58, May.
    4. Abu-Bakar, Siti Hawa & Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Mallick, Tapas Kumar & McLennan, Campbell & Munir, Abu Bakar & Mohd Yasin, Siti Hajar & Abdul Rahim, Ruzairi, 2013. "Is Renewable Heat Incentive the future?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 365-378.
    5. Felix Roth & Anna-Elisabeth Thum, 2022. "Intangible Capital and Labor Productivity Growth: Panel Evidence for the EU from 1998–2005," Contributions to Economics, in: Intangible Capital and Growth, chapter 0, pages 101-128, Springer.
    6. Brinig, Margaret F. & Nock, Steven L., 2003. ""I only want trust": norms, trust, and autonomy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(5), pages 471-487, November.
    7. Park, Sung-Won & Zhang, Zhong & Li, Furong & Son, Sung-Yong, 2021. "Peer-to-peer trading-based efficient flexibility securing mechanism to support distribution system stability," Applied Energy, Elsevier, vol. 285(C).
    8. Adrian Tschoegl, 1996. "Country and Firm Sources of International Competitiveness: The Case of the Foreign Exchange Market," Center for Financial Institutions Working Papers 97-19, Wharton School Center for Financial Institutions, University of Pennsylvania.
    9. Anupama Sen and Tooraj Jamasb, 2012. "Diversity in Unity: An Empirical Analysis of Electricity Deregulation in Indian States," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    10. Briguglio, Marie & Formosa, Glenn, 2017. "When households go solar: Determinants of uptake of a Photovoltaic Scheme and policy insights," Energy Policy, Elsevier, vol. 108(C), pages 154-162.
    11. Steven Kachelmeier & Kristy Towry, 2005. "The Limitations of Experimental Design: A Case Study Involving Monetary Incentive Effects in Laboratory Markets," Experimental Economics, Springer;Economic Science Association, vol. 8(1), pages 21-33, April.
    12. Beltran, Jesusa C. & Pannell, David J. & Doole, Graeme J. & White, Benedict, 2011. "Factors that affect the use of herbicides in Philippine rice farming systems," Working Papers 108769, University of Western Australia, School of Agricultural and Resource Economics.
    13. Daniel Wuebben & Jens F. Peters, 2022. "Communicating the Values and Benefits of Home Solar Prosumerism," Energies, MDPI, vol. 15(2), pages 1-19, January.
    14. Günther Rehme, 2011. "Endogenous Policy And Cross‐Country Growth Empirics," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(2), pages 262-296, May.
    15. Wadim Strielkowski & Dalia Streimikiene & Alena Fomina & Elena Semenova, 2019. "Internet of Energy (IoE) and High-Renewables Electricity System Market Design," Energies, MDPI, vol. 12(24), pages 1-17, December.
    16. Henneberry, Shida Rastegari & Khan, Muhhamad Ehsan & Piewthongngam, Kullapapruk, 2000. "An analysis of industrial-agricultural interactions: a case study in Pakistan," Agricultural Economics, Blackwell, vol. 22(1), pages 17-27, January.
    17. Paul Westacott & Chiara Candelise, 2016. "A Novel Geographical Information Systems Framework to Characterize Photovoltaic Deployment in the UK: Initial Evidence," Energies, MDPI, vol. 9(1), pages 1-20, January.
    18. Daniel S. Hamermesh, 1999. "The Art of Labormetrics," NBER Working Papers 6927, National Bureau of Economic Research, Inc.
    19. Sourav Khanna & Victor Becerra & Adib Allahham & Damian Giaouris & Jamie M. Foster & Keiron Roberts & David Hutchinson & Jim Fawcett, 2020. "Demand Response Model Development for Smart Households Using Time of Use Tariffs and Optimal Control—The Isle of Wight Energy Autonomous Community Case Study," Energies, MDPI, vol. 13(3), pages 1-27, January.
    20. Luciano Cavalcante Siebert & Alexandre Rasi Aoki & Germano Lambert-Torres & Nelson Lambert-de-Andrade & Nikolaos G. Paterakis, 2020. "An Agent-Based Approach for the Planning of Distribution Grids as a Socio-Technical System," Energies, MDPI, vol. 13(18), pages 1-13, September.

    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:energy:v:290:y:2024:i:c:s0360544223035144. 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.journals.elsevier.com/energy .

    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.