Peer-to-peer trading of electricity in local power market

Abstract

This report introduces the rationale of the Peer-to-peer (P2P) electricity market and pricing mechanisms for a microgrid and a multi-microgrid community (more than one microgrid) is proposed. Before implementing such algorithms, the basic process of trading between prosumers in a P2P electricity market by using a knapsack auction is proposed too. After being familiar these pricing mechanisms, algorithms for the trading mechanisms are compiled through MATLAB simulation. The feasibility and functionality of these pricing mechanisms are assessed via simulation depending on the compiled codes. On the last stage, considering all the prosumers are equipped with their own distributed generation systems and battery energy stored states, the outcomes of using different pricing mechanisms are also proposed. Overall, this project includes the basic trading process of each prosumer, the pricing mechanism for the transactions in one microgrid and the one for a multi-microgrid community. In addition, the results of various methods of trading are compared by demonstrating the cost spent by every prosumer in order to provide a reliable reference for the future work.