Consumers’ preference based optimal price determination model for P2P energy trading

• Published in: Electric power systems research 2020-10, Vol.187, p.106488, Article 106488
• Main Authors: Amin, Waqas, Huang, Qi, Afzal, M., Khan, Abdullah Aman, Zhang, Zhenyuan, Umer, Khalid, Ahmed, Syed Adrees
• Format: Article
• Language: English
• Subjects: Alternative energy sources; Consumers; Customer satisfaction; Electric rates; Energy allocation policy; Energy consumption; Energy industry; Energy policy; Energy sources; Energy trading; Markets; P2P Energy market; Preferences; Profitability; Renewable energy; Social welfare; Trading price; Uniform pricing; Utilities
• ISSN: 0378-7796; 1873-2046
• DOI: 10.1016/j.epsr.2020.106488

•A model for stable and profitable P2P electricity trading is proposed.•Consumers preference based optimal price determination method is proposed.•Competition among sellers is ensured.•An effective energy allocation policy (EAP) is deployed.•Consumers saving on energy bill is ensured. With the increase in energy demand and the integration of renewable energy resources, price determination of energy trading in the P2P energy market became more challenging. Participants need a fair mechanism that ensures the basic energy-related objectives i.e. savings on energy bills for consumers and profitability for the seller. To achieve these goals, this paper presents a uniform pricing scheme for energy trading along with energy allocation policy for P2P energy trading market. Based on consumer preferences, a novel method for determining energy trading price is proposed which ensures the increase in utility for consumers (saving in energy bill) and sellers profitability. Considering the fluctuating supply of energy in the P2P energy market, due to the sporadic nature of renewable energy resources, an effective scheme for energy allocation is proposed. The proposed method promotes competition among sellers and brings fairness in the energy market by selecting an optimal price. False declaration from the participants leads to a decrease in utilities. The proposed method provides the necessary information for assessing the consumers’ requirements and increase the social welfare of the consumers by reducing the trading prices. Extensive experiments were performed and the results show the effectiveness of the proposed method as the method helps to reduce the energy bills of the consumers and increases the satisfaction level as compared to previously proposed methods.