Transforming Energy Networks via Peer to Peer Energy Trading: Potential of Game Theoretic Approaches

Peer-to-peer (P2P) energy trading has emerged as a next-generation energy management mechanism for the smart grid that enables each prosumer of the network to participate in energy trading with one another and the grid. This poses a significant challenge in terms of modeling the decision-making process of each participant with conflicting interest and motivating prosumers to participate in energy trading and to cooperate, if necessary, for achieving different energy management goals. Therefore, such decision-making process needs to be built on solid mathematical and signal processing tools that can ensure an efficient operation of the smart grid. This paper provides an overview of the use of game theoretic approaches for P2P energy trading as a feasible and effective means of energy management. As such, we discuss various games and auction theoretic approaches by following a systematic classification to provide information on the importance of game theory for smart energy research. Then, the paper focuses on the P2P energy trading describing its key features and giving an introduction to an existing P2P testbed. Further, the paper zooms into the detail of some specific game and auction theoretic models that have recently been used in P2P energy trading and discusses some important finding of these schemes.Comment: 38 pages, single column, double spac

A Community Microgrid Architecture with an Internal Local Market

This work fits in the context of community microgrids, where members of a community can exchange energy and services among themselves, without going through the usual channels of the public electricity grid. We introduce and analyze a framework to operate a community microgrid, and to share the resulting revenues and costs among its members. A market-oriented pricing of energy exchanges within the community is obtained by implementing an internal local market based on the marginal pricing scheme. The market aims at maximizing the social welfare of the community, thanks to the more efficient allocation of resources, the reduction of the peak power to be paid, and the increased amount of reserve, achieved at an aggregate level. A community microgrid operator, acting as a benevolent planner, redistributes revenues and costs among the members, in such a way that the solution achieved by each member within the community is not worse than the solution it would achieve by acting individually. In this way, each member is incentivized to participate in the community on a voluntary basis. The overall framework is formulated in the form of a bilevel model, where the lower level problem clears the market, while the upper level problem plays the role of the community microgrid operator. Numerical results obtained on a real test case implemented in Belgium show around 54% cost savings on a yearly scale for the community, as compared to the case when its members act individually.Comment: 16 pages, 15 figure

Bringing Competition to Urban Water Supply

This paper proposes a market-based reform that would introduce competition into the provision of urban water. This proposal calls for a decoupling of infrastructure control and ownership of water whereby the property rights to water would be transferred to private hands. The proposal involves periodically allocation (e.g. by auction) of existing water stock held in urban catchments to virtual suppliers who then compete in providing bulk water. This change when coupled with effective third party access and retail competition would lead to a competitive market for the provision of urban water. The approach aims to address concerns over inefficient pricing and infrastructure provision under the current arrangement.Water Utilities, Efficient Water Pricing, Water Provider Competition

Cloudbus Toolkit for Market-Oriented Cloud Computing

This keynote paper: (1) presents the 21st century vision of computing and identifies various IT paradigms promising to deliver computing as a utility; (2) defines the architecture for creating market-oriented Clouds and computing atmosphere by leveraging technologies such as virtual machines; (3) provides thoughts on market-based resource management strategies that encompass both customer-driven service management and computational risk management to sustain SLA-oriented resource allocation; (4) presents the work carried out as part of our new Cloud Computing initiative, called Cloudbus: (i) Aneka, a Platform as a Service software system containing SDK (Software Development Kit) for construction of Cloud applications and deployment on private or public Clouds, in addition to supporting market-oriented resource management; (ii) internetworking of Clouds for dynamic creation of federated computing environments for scaling of elastic applications; (iii) creation of 3rd party Cloud brokering services for building content delivery networks and e-Science applications and their deployment on capabilities of IaaS providers such as Amazon along with Grid mashups; (iv) CloudSim supporting modelling and simulation of Clouds for performance studies; (v) Energy Efficient Resource Allocation Mechanisms and Techniques for creation and management of Green Clouds; and (vi) pathways for future research.Comment: 21 pages, 6 figures, 2 tables, Conference pape

InterCloud: Utility-Oriented Federation of Cloud Computing Environments for Scaling of Application Services

Cloud computing providers have setup several data centers at different geographical locations over the Internet in order to optimally serve needs of their customers around the world. However, existing systems do not support mechanisms and policies for dynamically coordinating load distribution among different Cloud-based data centers in order to determine optimal location for hosting application services to achieve reasonable QoS levels. Further, the Cloud computing providers are unable to predict geographic distribution of users consuming their services, hence the load coordination must happen automatically, and distribution of services must change in response to changes in the load. To counter this problem, we advocate creation of federated Cloud computing environment (InterCloud) that facilitates just-in-time, opportunistic, and scalable provisioning of application services, consistently achieving QoS targets under variable workload, resource and network conditions. The overall goal is to create a computing environment that supports dynamic expansion or contraction of capabilities (VMs, services, storage, and database) for handling sudden variations in service demands. This paper presents vision, challenges, and architectural elements of InterCloud for utility-oriented federation of Cloud computing environments. The proposed InterCloud environment supports scaling of applications across multiple vendor clouds. We have validated our approach by conducting a set of rigorous performance evaluation study using the CloudSim toolkit. The results demonstrate that federated Cloud computing model has immense potential as it offers significant performance gains as regards to response time and cost saving under dynamic workload scenarios.Comment: 20 pages, 4 figures, 3 tables, conference pape