Abstract:
The increasing level of Distributed Energy Resources (DER) has widely transformed the
production, delivery, and consumption of energy including microgrids. As a result of the
increasing levels of DERs, consumers are now becoming prosumers who both produce and
consume energy. As renewable energy becomes more prevalent at the residential level, we
need to adopt a new market strategy that will help to establish prices, decentralize and
make the energy market and the energy infrastructure more flexible. However, integrating
renewable energy into today’s electricity infrastructure is a difficult task. The new smart
grid technology will need to be based on mathematical techniques like game theory. An other difficulty is how the grid decides on a price lower than the P2P price that allows it
to sell its energy to prosumers if demand falls below the grid’s load requirement. There
is a need for local energy markets, to enable the direct selling of renewable energy to con sumers and prosumers without intermediaries’ involvement. Recent developments have led
to peer-to-peer(P2P) trading emerging as a possible mechanism for prosumers to actively
participate in the energy market. So, we present a peer-to-peer (P2P) energy-sharing
strategy for building prosumers. A Stackelberg game model with building prosumers and
system operators as players is included in the proposed scheme. To find Stackelberg equi librium(SE), an algorithm has been developed for optimizing internal trading prices and
consumption while maximizing participants’ profits. By analyzing SE, we can come up
with a feasible solution in the scenario that peer-to-peer trading becomes profitable for a
locality. The proposed system is simulated in MATLAB software and different case studies
are furnished to study the benefit of having P2P trading.
