Peer to Peer Energy Trading for Retail Electricity Market

Abstract

In the case of the conventional centralized structure of the power system, the electric-ity consumers receive their electricity supply from the centralized utility. The power is delivered through the bundled transmission and distribution networks at a monopolistic price in the centralized market structure. The penetration of Distributed Energy Re-sources (DER) at various voltage levels lead to the deregulation of the electricity sector at the generation level. The development of Renewable Energy Technologies (RETs) al low voltage distribution levels has transformed the deregulated structure of the power system into a consumer-centric liberalized structure. The consumers are becoming pro-sumers by producing their energy by installing DERs at their premises. The prosumers and consumers self-organize and trade energy among themselves. Consumers are be-coming more self-selective in choosing their electricity supplier with the development of digital technologies. This led to the development of retail electricity markets where the peers (prosumers and consumers) trade energy among themselves called as Peer to Peer (P2P) energy trading. newline newlinePeer to Peer (P2P) energy trading is a pioneering energy trading technology for retail energy markets at the distribution level. This research work attempts to provide a framework for the market and technical integration of P2P energy trading at a low volt-age distribution level. The description of the different market entities like prosumer, consumer, prosumager, and nonsumer involved in P2P energy trading is defined. For the market integration of P2P energy trading, the pricing mechanism for energy con-sumption charges of the individual households and community under various trading scenarios are devised. Two pricing mechanisms are discussed to compute energy con sumption charges. The proposed pricing methodology is tested in a community having ten households. The results show that the Mid Market Rate (MMR) method provides a better price than Bill Sharing (BS) method. The results are