Pricing Mechanism For Energy Trading In Power Market

Global warming has made the transition to zero-carbon emissions generation a necessity for a healthy and green society.The healthy and green society requires that dependability on the central/traditional grid,which is mostly driven by fossil fuel,natural gas,and coal,be reduced.Peer-to-peer(P2P)energy trading in the power market has been proposed to achieve this objective.However,the success of such trading depends on several factors such as,(i)Fulfillment of energy-related objectives of participants,(ii)An effective and consensus-based pricing mechanism that ensures the profitability of the participants and(iii)an efficient energy allocation policy which increases the satisfaction level of the participants.Existing work in P2 P energy trading provides an interaction platform among the energy trading participants.However,most of the existing work has not focused on the participants' preferences.Therefore,this dissertation proposes a game-theoretic framework for P2 P energy trading platform based on participants' preferences.This dissertation proposes a hybrid P2 P energy trading platform in which several market players,i.e.,(consumers and sellers)are formulated in an energy market in the presence of centralized authority known as market coordinator to trade the energy among themselves.Among these players,some players are equipped with distributed energy resources(DERs)hence acts as energy sellers or producers.The rest of the players which does not have such DERs will acts as energy consumers or buyers.P2 P energy trading platform consisting of several technologies.Based on their role and functionality in peerto-peer energy trading platform,a five-layered architecture framework is proposed.The role of the market coordinator is to identify and fulfill the basic energy related objectives for both consumers and sellers.The market coordinator is responsible for sharing the necessary information among the energy participants to decide the energy trading price based on the consensus among the market participants.This trading price will increase the utilities for both the sellers and consumers.As the nature of the distributed energy resources are stochastic and intermittent.Therefore,this dissertation is further aimed is to design an efficient and fair energy allocation policy.The designed energy allocation policy increases the satisfaction level of the market participants.In general,this dissertation presents a perspective on the transformation of a traditional market into the P2P(distributed)energy trading market.The main contributions of this dissertation are given below.1.Firstly,a model that addresses the basic energy-related objectives of both pro-ducers and consumers is proposed along with the layered architecture of P2P market to identify and categorize the existing technologies.Then,an extensive form game based on non-cooperative game theory is described and the existence of its strict Nash equilibrium is evaluated.An energy allocation policy has also been devised that motivates prosumers by ensuring that none of them exits the market without trading irrespective of the balance between supply and demand.The proposed energy trading scheme is evaluated on the IEEE-14 bus system with8 producers and 11 consumers as market participants.Experimental results are compared with the previous studies and found that 33% to 7% reduction in energy bills of the consumers is achieved from the proposed scheme which boldly shows the effectiveness of the proposed scheme.2.Secondly,based on consumers' preferences,an optimal price determination model for peer-to-peer energy trading 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 P2 P energy market,due to the sporadic na-ture 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.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.The results are compared with the existing methods to show the effectiveness of he proposed model.3.Thirdly,in order to eliminate the need of repetitive contract formulation and to maintain the stability of a contract in an energy market a model converge from non-cooperative game to cooperative game is proposed.The proposed model helps to reduce the computational time in a game-theocratic framework by elim-inating the need of for repetitive contract formulation.The proposed model also ensures the survival of small-scale sellers who are at a risk of market-exit when they do not own enough surplus electricity to cater the power needs of a single consumer.Hence the stability of the contract can be guaranteed.The proposed model uses IEEE 14-bus system,which includes total 22 players(11 prosumers and 11 consumers),to test the effectiveness of the proposed approach.A one year data set is evaluated on the proposed method and it is shown that both prosumers and consumers can get benefit from the P2 P electricity trading while maintaining the stability of the market.4.Fourthly,with the increase in penetration of RES and their stochastic nature which creating some challenges for the grid,such as economic threat,meeting en-ergy demands for consumers with limited generation capacity.A game-theoretic framework is proposed to determine the energy trading price between sellers and grid.Further,an energy allocation policy is also proposed to ensures the comfort-able index of the energy buyers.To,increase the efficiency of P2 P energy trad-ing networks a Vogel's approximation-based optimization problem is proposed to minimize energy losses.The proposed model helps to satisfy the energy demands of buyers with an increase in profitability to the seller and grid thus tries to re-duce the economic threat faced by the grid in the presence of distributed energy resources.Extensive experiments are performed and compared with the existing methods to show the effectiveness of the proposed models.