A fair Peer-to-Peer Electricity Market model for Residential Prosumers

TL;DR

This paper introduces a novel peer-to-peer energy trading model for residential prosumers, utilizing a bilateral negotiation mechanism based on assignment game theory to ensure fair and stable trading contracts with minimal privacy concerns.

Contribution

It presents a new P2P market framework modeled as an assignment game and a negotiation protocol that operates efficiently over dynamic networks with limited information exchange.

Findings

The proposed model achieves fair and stable trading agreements.

Numerical simulations demonstrate the effectiveness and privacy-preserving nature of the negotiation protocol.

The scheme simplifies market entry for residential prosumers.

Abstract

In this paper, we propose a bilateral peer-to-peer (P2P) energy trading scheme for residential prosumers with a simplified entry to the market. We formulate the market as an assignment game, a special class of coalitional games. For solving the resulting decision problem, we design a bilateral negotiation mechanism that enables matched buyer-seller pairs to reach a consensus on a set of ``stable" and ``fair" trading contracts. The proposed negotiation process can be executed on possibly time-varying communication networks with virtually minimal information requirements that in turn preserves privacy among prosumers. Numerical simulations illustrate the beneficial features of our P2P market model and negotiation protocol.