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Grid influenced peer-to-peer energy trading

Abstract:
This paper proposes a peer-to-peer (P2P) energy trading scheme that can help a centralized power system to reduce the total electricity demand of its customers at the peak hour. To do so, a cooperative Stackelberg game is formulated, in which the centralized power system acts as the leader that needs to decide on a price at the peak demand period to incentivize prosumers to not seek any energy from it. The prosumers, on the other hand, act as followers and respond to the leader's decision by forming suitable coalitions with neighboring prosumers in order to participate in P2P energy trading to meet their energy demand. The properties of the proposed Stackelberg game are studied. It is shown that the game has a unique and stable Stackelberg equilibrium, as a result of the stability of prosumers' coalitions. At the equilibrium, the leader chooses its strategy using a derived closed-form expression, while the prosumers choose their equilibrium coalition structure. An algorithm is proposed that enables the centralized power system and the prosumers to reach the equilibrium solution. Numerical case studies demonstrate the beneficial properties of the proposed scheme.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1109/tsg.2019.2937981

Authors

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Role:
Author
ORCID:
0000-0003-1055-7200
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Role:
Author
ORCID:
0000-0003-0763-0032
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Role:
Author
ORCID:
0000-0002-9307-2120
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Institution:
University of Oxford
Division:
MPLS
Department:
Engineering Science
Oxford college:
Hertford College
Role:
Author
ORCID:
0000-0003-2781-9588
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Role:
Author
ORCID:
0000-0002-6821-8327


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Funder identifier:
https://ror.org/01h0zpd94
Grant:
61750110529
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Funder identifier:
https://ror.org/037405308
Grant:
AQRF11016-17RD2
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Funder identifier:
https://ror.org/021nxhr62
Grant:
ECCS-1824710


Publisher:
IEEE
Journal:
IEEE Transactions on Smart Grid More from this journal
Volume:
11
Issue:
2
Pages:
1407-1418
Publication date:
2019-08-28
Acceptance date:
2019-08-24
DOI:
EISSN:
1949-3061
ISSN:
1949-3053


Language:
English
Keywords:
Pubs id:
1090156
Local pid:
pubs:1090156
Deposit date:
2025-12-19
ARK identifier:

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