A Dynamic Peer-to-Peer Electricity Market Model for a Community Microgrid with Price-Based Demand Response

Fayiz Alfaverh, Mouloud Denai, Yichuang Sun

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Abstract

Peer-to-Peer (P2P) energy sharing enables prosumers within a community microgrid to directly trade their local energy resources such as solar photovoltaic (PV) panels, small-scale wind turbines, electric vehicle battery storage among each other based on an agreed cost-sharing mechanism. This paper addresses the energy cost minimization problem associated with P2P energy sharing among smart homes which are connected in a residential community. The contribution of this paper is threefold. First, an effective Home Energy Management System (HEMS) is proposed for the smart homes equipped with local generation such as rooftop solar panels, storage and appliances to achieve the demand response (DR) objective. Second, this paper proposes a P2P pricing mechanism based on the dynamic supply-demand ratio and export-import retail prices ratio. This P2P model motivates individual customers to participate in energy trading and ensures that not a single household would be worse off. Finally, the performance of the proposed pricing mechanism, is compared with three popular P2P sharing models in the literature namely the Supply and Demand Ratio (SDR), Mid-Market Rate (MMR) and bill sharing (BS) considering different types of peers equipped with solar panels, electric vehicle, and domestic energy storage system. The proposed P2P framework has been applied to a community consisting of 100 households and the simulation results demonstrate fairness and substantial energy cost saving/revenue among peers. The P2P model has also been assessed under the physical constrains of the distribution network.
Original languageEnglish
Number of pages1
JournalIEEE Transactions on Smart Grids
DOIs
Publication statusPublished - 17 Feb 2023

Keywords

  • Peer-to-peer energy sharing; energy management; vehicle-to-grid; pricing mechanism; demand response.

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