A peer-to-peer market mechanism incorporating multi-energy coupling and cooperative behaviors. (1st April 2022)

• Record Type: Journal Article
• Authors: Wang, Ni; Liu, Ziyi; Heijnen, Petra; Warnier, Martijn
• Is Part Of: Applied energy. Volume 311(2022)
• Publication Date: 2022-04-01
• Subjects: Peer-to-peer energy trading -- Local energy market -- Cooperative game -- Integrated energy system -- Distributed energy resource; Power (Mechanics) -- Periodicals; Energy conservation -- Periodicals; Energy conversion -- Periodicals; 621.042
• DOI: 10.1016/j.apenergy.2022.118572
• Languages: English
• ISSNs: 0306-2619

Abstract

Abstract: As the use of distributed energy resources increases, peer-to-peer (P2P) energy trading is becoming a promising way to harmonize the decarbonization and decentralization transformations in the energy sector. P2P markets give households the autonomy to make individual decisions and thus they may cooperate with each other to obtain economic benefits. However, existing studies on cooperative behaviors in P2P markets focus mostly on the electricity sector and P2P multi-energy markets are rarely studied. In fact, other energy carriers not only constitute a large part of the total energy demand, but their coupling can potentially benefit the system as well as the end-users. In this paper, we propose a P2P multi-energy market mechanism that allows peers to trade both electricity and heat. Two trading coalitions, i.e., an electricity-only trading coalition and an electricity–heat trading coalition, are predefined. The peers will join one of the coalitions based on their potential benefits and will trade energy inside the coalition. The energy markets are cleared separately per coalition and per energy carrier and hence, multi-energy markets are modeled. The proposed mechanism is a first-of-its-kind that explores the integrated effects of the multi-energy coupling and the cooperative behaviors in the P2P market. It is illustrated by a case study on a neighborhood in the Netherlands using realistic data. Results show that the mechanism is prosumer-centric as peers choose to join different coalitions at different time steps which benefit them the most. Compared to the reference scenario where there is no P2P trading, the P2P multi-energy market leads to higher economic benefits for all the peers altogether and benefits most individuals. The case study also demonstrates a benefit transfer from service-sector peers to residential peers. Highlights: We propose a peer-to-peer multi-energy market mechanism. Cooperative behaviors between the peers are studied by introducing two coalitions. The electricity market and the heat market are cleared separately. A case study in the Netherlands was conducted using realistic data. Results show that the mechanism benefits most peers, especially small ones.