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

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

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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.

Original languageEnglish
JournalApplied Energy
Volume308
Pages (from-to)118400
Number of pages1
ISSN0306-2619
DOIs
Publication statusPublished - 2021

Keywords

  • Peer-to-peer energy trading
  • Shared energy storage
  • Market mechanism
  • Equilibrium problem
  • Game theory
  • Transactive energy

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