Optimal network charge for peer-to-peer energy trading: a grid perspective
Peer-to-peer (P2P) energy trading is a promising market scheme to accommodate the increasing distributed energy resources (DERs). However, how P2P to be integrated into the existing power systems remains to be investigated. In this paper, we apply network charge as a means for the grid operator to a...
| Main Authors: | , , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2022
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| Online Access: | https://hdl.handle.net/10356/162463 |
| _version_ | 1824454258888540160 |
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| author | Yang, Yu Chen, Yue Hu, Guoqiang Spanos, Costas J. |
| author2 | School of Electrical and Electronic Engineering |
| author_facet | School of Electrical and Electronic Engineering Yang, Yu Chen, Yue Hu, Guoqiang Spanos, Costas J. |
| author_sort | Yang, Yu |
| collection | NTU |
| description | Peer-to-peer (P2P) energy trading is a promising market scheme to accommodate the increasing distributed energy resources (DERs). However, how P2P to be integrated into the existing power systems remains to be investigated. In this paper, we apply network charge as a means for the grid operator to attribute transmission loss and ensure network constraints for empowering P2P transaction. The interaction between the grid operator and the prosumers is modeled as a Stackelberg game, which yields a bi-level optimization problem. We prove that the Stackelberg game admits an equilibrium network charge price. Besides, we propose a method to obtain the network charge price by converting the bi-level optimization into a single-level mixed-integer quadratic programming (MIQP), which can handle a reasonable scale of prosumers efficiently. Simulations on the IEEE bus systems show that the proposed optimal network charge is favorable as it can benefit both the grid operator and the prosumers for empowering the P2P market, and achieves near-optimal social welfare. Moreover, the results show that the presence of energy storage will make the prosumers more sensitive to the network charge price changes. |
| first_indexed | 2025-02-19T03:19:28Z |
| format | Journal Article |
| id | ntu-10356/162463 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2025-02-19T03:19:28Z |
| publishDate | 2022 |
| record_format | dspace |
| spelling | ntu-10356/1624632022-10-26T01:55:11Z Optimal network charge for peer-to-peer energy trading: a grid perspective Yang, Yu Chen, Yue Hu, Guoqiang Spanos, Costas J. School of Electrical and Electronic Engineering Engineering::Electrical and electronic engineering Peer-to-Peer Transaction Network Charge Peer-to-peer (P2P) energy trading is a promising market scheme to accommodate the increasing distributed energy resources (DERs). However, how P2P to be integrated into the existing power systems remains to be investigated. In this paper, we apply network charge as a means for the grid operator to attribute transmission loss and ensure network constraints for empowering P2P transaction. The interaction between the grid operator and the prosumers is modeled as a Stackelberg game, which yields a bi-level optimization problem. We prove that the Stackelberg game admits an equilibrium network charge price. Besides, we propose a method to obtain the network charge price by converting the bi-level optimization into a single-level mixed-integer quadratic programming (MIQP), which can handle a reasonable scale of prosumers efficiently. Simulations on the IEEE bus systems show that the proposed optimal network charge is favorable as it can benefit both the grid operator and the prosumers for empowering the P2P market, and achieves near-optimal social welfare. Moreover, the results show that the presence of energy storage will make the prosumers more sensitive to the network charge price changes. National Research Foundation (NRF) Submitted/Accepted version This work was supported by the Republic of Singapore’s National Research Foundation through a grant to the Berkeley Education Alliance for Research in Singapore (BEARS) for the Singapore-Berkeley Building Efficiency and Sustainability in the Tropics (SinBerBEST) Program. BEARS has been established by the University of California, Berkeley as a center for intellectual excellence in research and education in Singapore. This work was also supported in part by the CUHK Direct Grant for Research (No. 4055169). 2022-10-26T01:27:04Z 2022-10-26T01:27:04Z 2022 Journal Article Yang, Y., Chen, Y., Hu, G. & Spanos, C. J. (2022). Optimal network charge for peer-to-peer energy trading: a grid perspective. IEEE Transactions On Power Systems. https://dx.doi.org/10.1109/TPWRS.2022.3185585 0885-8950 https://hdl.handle.net/10356/162463 10.1109/TPWRS.2022.3185585 en IEEE Transactions on Power Systems © 2022 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works. The published version is available at: https://doi.org/10.1109/TPWRS.2022.3185585. application/pdf |
| spellingShingle | Engineering::Electrical and electronic engineering Peer-to-Peer Transaction Network Charge Yang, Yu Chen, Yue Hu, Guoqiang Spanos, Costas J. Optimal network charge for peer-to-peer energy trading: a grid perspective |
| title | Optimal network charge for peer-to-peer energy trading: a grid perspective |
| title_full | Optimal network charge for peer-to-peer energy trading: a grid perspective |
| title_fullStr | Optimal network charge for peer-to-peer energy trading: a grid perspective |
| title_full_unstemmed | Optimal network charge for peer-to-peer energy trading: a grid perspective |
| title_short | Optimal network charge for peer-to-peer energy trading: a grid perspective |
| title_sort | optimal network charge for peer to peer energy trading a grid perspective |
| topic | Engineering::Electrical and electronic engineering Peer-to-Peer Transaction Network Charge |
| url | https://hdl.handle.net/10356/162463 |
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