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

Distributed Power Generation Scheduling, Modelling and Expansion Planning

Distributed generation is becoming more important in electrical power systems due to the decentralization of energy production. Within this new paradigm, new approaches for the operation and planning of distributed power generation are yet to be explored. This book deals with distributed energy resources, such as renewable-based distributed generators and energy storage units, among others, considering their operation, scheduling, and planning. Moreover, other interesting aspects such as demand response, electric vehicles, aggregators, and microgrid are also analyzed. All these aspects constitute a new paradigm that is explored in this Special Issue

Optimal Demand Response Strategy in Electricity Markets through Bi-level Stochastic Short-Term Scheduling

Current technology in the smart monitoring including Internet of Things (IoT) enables the electricity network at both transmission and distribution levels to apply demand response (DR) programs in order to ensure the secure and economic operation of power systems. Liberalization and restructuring in the power systems industry also empowers demand-side management in an optimum way. The impacts of DR scheduling on the electricity market can be revealed through the concept of DR aggregators (DRAs), being the interface between supply side and demand side. Various markets such as day-ahead and real-time markets are studied for supply-side management and demand-side management from the Independent System Operator (ISO) viewpoint or Distribution System Operator (DSO) viewpoint. To achieve the research goals, single or bi-level optimization models can be developed. The behavior of weather-dependent renewable energy sources, such as wind and photovoltaic power generation as uncertainty sources, is modeled by the Monte-Carlo Simulation method to cope with their negative impact on the scheduling process. Moreover, two-stage stochastic programming is applied in order to minimize the operation cost. The results of this study demonstrate the importance of considering all effective players in the market, such as DRAs and customers, on the operation cost. Moreover, modeling the uncertainty helps network operators to reduce the expenses, enabling a resilient and reliable network.A tecnologia atual na monitorização inteligente, incluindo a Internet of Things (IoT), permite que a rede elétrica ao nível da transporte e distribuição faça uso de programas de demand response (DR) para garantir a operação segura e económica dos sistemas de energia. A liberalização e a reestruturação da indústria dos sistemas de energia elétrica também promovem a gestão do lado da procura de forma otimizada. Os impactes da implementação de DR no mercado elétrico podem ser expressos pelo conceito de agregadores de DR (DRAs), sendo a interface entre o lado da oferta e o lado da procura de energia elétrica. Vários mercados, como os mercados diário e em tempo real, são estudados visando a gestão otimizada do ponto de vista do Independent System Operator (ISO) ou do Distribution System Operator (DSO). Para atingir os objetivos propostos, modelos de otimização em um ou dois níveis podem ser desenvolvidos. O comportamento das fontes de energia renováveis dependentes do clima, como a produção de energia eólica e fotovoltaica que acarretam incerteza, é modelado pelo método de simulação de Monte Carlo. Ainda, two-stage stochastic programming é aplicada para minimizar o custo de operação. Os resultados deste estudo demonstram a importância de considerar todos os participantes efetivos no mercado, como DRAs e clientes finais, no custo de operação. Ainda, considerando a incerteza no modelo beneficia os operadores da rede na redução de custos, capacitando a resiliência e fiabilidade da rede

Demand Side Management of Electric Vehicles in Smart Grids: A survey on strategies, challenges, modeling, and optimization

The shift of transportation technology from internal combustion engine (ICE) based vehicles to electricvehicles (EVs) in recent times due to their lower emissions, fuel costs, and greater efficiency hasbrought EV technology to the forefront of the electric power distribution systems due to theirability to interact with the grid through vehicle-to-grid (V2G) infrastructure. The greater adoptionof EVs presents an ideal use-case scenario of EVs acting as power dispatch, storage, and ancillaryservice-providing units. This EV aspect can be utilized more in the current smart grid (SG) scenarioby incorporating demand-side management (DSM) through EV integration. The integration of EVswith DSM techniques is hurdled with various issues and challenges addressed throughout thisliterature review. The various research conducted on EV-DSM programs has been surveyed. This reviewarticle focuses on the issues, solutions, and challenges, with suggestions on modeling the charginginfrastructure to suit DSM applications, and optimization aspects of EV-DSM are addressed separatelyto enhance the EV-DSM operation. Gaps in current research and possible research directions have beendiscussed extensively to present a comprehensive insight into the current status of DSM programsemployed with EV integration. This extensive review of EV-DSM will facilitate all the researchersto initiate research for superior and efficient energy management and EV scheduling strategies andmitigate the issues faced by system uncertainty modeling, variations, and constraints

Hybrid IGDT-stochastic self-scheduling of a distributed energy resources aggregator in a multi-energy system

The optimal management of distributed energy resources (DERs) and renewable-based generation in multi-energy systems (MESs) is crucial as it is expected that these entities will be the backbone of future energy systems. To optimally manage these numerous and diverse entities, an aggregator is required. This paper proposes the self-scheduling of a DER aggregator through a hybrid Info-gap Decision Theory (IGDT)-stochastic approach in an MES. In this approach, there are several renewable energy resources such as wind and photovoltaic (PV) units as well as multiple DERs, including combined heat and power (CHP) units, and auxiliary boilers (ABs). The approach also considers an EV parking lot and thermal energy storage systems (TESs). Moreover, two demand response (DR) programs from both price-based and incentive-based categories are employed in the microgrid to provide flexibility for the participants. The uncertainty in the generation is addressed through stochastic programming. At the same time, the uncertainty posed by the energy market prices is managed through the application of the IGDT method. A major goal of this model is to choose the risk measure based on the nature and characteristics of the uncertain parameters in the MES. Additionally, the behavior of the risk-averse and risk-seeking decision-makers is also studied. In the first stage, the sole-stochastic results are presented and then, the hybrid stochastic-IGDT results for both risk-averse and risk-seeker decision-makers are discussed. The proposed problem is simulated on the modified IEEE 15-bus system to demonstrate the effectiveness and usefulness of the technique.© 2022 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).fi=vertaisarvioitu|en=peerReviewed

Peer-to-peer energy trading between wind power producer and demand response aggregators for scheduling joint energy and reserve

In this article, a stochastic decision-making framework is presented in which a wind power producer (WPP) provides some required reserve capacity from demand response aggregators (DRAs) in a peer-to-peer (P2P) structure. In this structure, each DRA is able to choose the most competitive WPP, and purchase energy and sell reserve capacity to that WPP under a bilateral contract-based P2P electricity trading mechanism. Based on this structure, the WPP can determine the optimal buying reserve from DRAs to offset part of wind power deviation. The proposed framework is formulated as a bilevel stochastic model in which the upper level maximizes the WPP's profit based on the optimal bidding in the day-ahead and balancing markets, whereas the lower level minimizes DRAs' costs. In order to incorporate the risk associated with the WPP's decisions and to assess the effect of scheduling reserves on the profit variability, conditional value at risk is employed.©2020 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.fi=vertaisarvioitu|en=peerReviewed

Multi-household energy management in a smart neighborhood in the presence of uncertainties and electric vehicles

none4noThe pathway toward the reduction of greenhouse gas emissions is dependent upon increasing Renewable Energy Sources (RESs), demand response, and electrification of public and private transportation. Energy management techniques are necessary to coordinate the operation in this complex scenario, and in recent years several works have appeared in the literature on this topic. This paper presents a study on multi-household energy management for Smart Neighborhoods integrating RESs and electric vehicles participating in Vehicle-to-Home (V2H) and Vehicle-to-Neighborhood (V2N) programs. The Smart Neighborhood comprises multiple households, a parking lot with public charging stations, and an aggregator that coordinates energy transactions using a Multi-Household Energy Manager (MH-EM). The MH-EM jointly maximizes the profits of the aggregator and the households by using the augmented ɛ-constraint approach. The generated Pareto optimal solutions allow for different decision policies to balance the aggregator’s and households’ profits, prioritizing one of them or the RES energy usage within the Smart Neighborhood. The experiments have been conducted over an entire year considering uncertainties related to the energy price, electric vehicles usage, energy production of RESs, and energy demand of the households. The results show that the MH-EM optimizes the Smart Neighborhood operation and that the solution that maximizes the RES energy usage provides the greatest benefits also in terms of peak-shaving and valley-filling capability of the energy demand.openLuca Serafini, Emanuele Principi, Susanna Spinsante, Stefano SquartiniSerafini, Luca; Principi, Emanuele; Spinsante, Susanna; Squartini, Stefan