A Survey on Energy Trading in Smart Grid

TL;DR

This survey reviews the current state of energy trading in smart grids, highlighting enabling technologies, motivations, and mathematical frameworks to facilitate efficient and sustainable distributed energy markets.

Contribution

It provides a comprehensive overview of energy trading concepts, technologies, and mathematical models in smart grids, filling a gap in consolidated knowledge.

Findings

Energy trading enhances grid efficiency and reduces costs.

Various mathematical frameworks are employed for modeling energy trading.

Technologies for generation, storage, and communication are crucial for implementation.

Abstract

As the distributed energy generation and storage technologies are becoming economically viable, energy trading is gradually becoming a profit making option for end-users. This trend is further supported by the regulators and the policy makers as it aids the efficiency of power grid operations, reduces power generation cost and the Green House Gas (GHG) emissions. To that end, in this paper we provide an overview of distributed energy trading concepts in smart grid. First, we identify the motivation and the desired outcomes of energy trading framework. Then we present the enabling technologies that are required to generate, store, and communicate with the trading agencies. Finally, we survey on the existing literature and present an array of mathematical frameworks employed.