Consensus-based Approach to Peer-to-Peer Electricity Markets with Product Differentiation

Etienne Guillemin Sorin*, Lucien Ali Bobo, Pierre Pinson

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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Abstract

With the sustained deployment of distributed generation capacities and the more proactive role of consumers, power systems and their operation are drifting away from a conventional top-down hierarchical structure. Electricity market structures, however, have not yet embraced that evolution. Respecting the high-dimensional, distributed and dynamic nature of modern power systems would translate to designing peer-to-peer markets, or at least to using such a structure in the background for a bottom-up approach to future electricity markets. A peer-to-peer market structure based on a Multi-Bilateral Economic Dispatch (MBED) formulation is introduced, allowing for multi-bilateral trading with product differentiation, for instance based on consumer preferences. Consequently a Relaxed Consensus+Innovation (RCI) approach is proposed to solve the MBED in fully decentralized manner. A set of realistic case study analyses shows that such peer-to-peer market structures can effectively reduce externalities on power systems with a limited cost increase compared to centralized market approaches. Additionally, the RCI solving approach allows for a fully decentralized market clearing which converges with a negligible optimality gap, with a limited amount of information being shared.
Original languageEnglish
JournalIEEE Transactions on Power Systems
Volume34
Issue number2
Pages (from-to)994 - 1004
ISSN0885-8950
DOIs
Publication statusPublished - 2018

Keywords

  • Peer-to-peer computing
  • Electricity supply industry
  • Power system dynamics
  • Optimization
  • Proposals
  • Finance
  • Peer-to-peer

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