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

Research output: Contribution to journalJournal article – Annual report year: 2018Researchpeer-review

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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
Issue number2
Pages (from-to)994 - 1004
Publication statusPublished - 2018
CitationsWeb of Science® Times Cited: No match on DOI

    Research areas

  • Peer-to-peer computing, Electricity supply industry, Power system dynamics, Optimization, Proposals, Finance, Peer-to-peer
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ID: 156602232