Distributed peer-to-peer energy trading based on game theory in a community microgrid considering ownership complexity of distributed energy resources

With the ambitions of reducing carbon emissions across the globe, the integration of distributed energy resources (DERs) into community microgrids is being widely promoted. Peer-to-peer (P2P) energy trading, which enables participants with DERs to trade energy with directly each other (without the need for an intermediary), plays a fundamental role in the proliferation of system flexibility for low-carbon energy transitions. Because the ownership complexity feature of DERs greatly impacts P2P energy trading, this study developed a game-theorybased decentralized trading scheme to examine the effects of DER ownership on the benefit of each participant in the P2P trading market. The results indicate that: i) the benefit of an agent with high self-sufficient-rate (SSR) or the drawback of an agent with low SSR is maximized if the agent is the only prosumer in the market, and gradually decreases as the capacity of Photovoltaic (PV) owned by other agents increases; ii) P2P trading generally benefits each participating agent in the market from the economic aspect, but economic loss may occur in communities with high penetration-rates of PV; and iii) the way to increase the economic benefits of P2P seller/buyers in the market is to either increase the supply/demand of themselves, or decrease the supply/demand of competitors.

Automated summary

This study examines the effects of DER ownership on the benefit of each participant in the P2P energy trading market by developing a game-theory-based decentralized trading scheme. The results show that DER ownership complexity significantly impacts P2P energy trading, and P2P trading can benefit each participant in the market economically, although economic losses may occur in communities with high penetration rates of PV.