TY - JOUR
T1 - Network cost allocation methods for pay-as-bid peer-to-peer energy trading
T2 - A comparison
AU - Noorfatima, N.
AU - Choi, Y.
AU - Onen, A.
AU - Jung, J.
N1 - Funding Information:
This work was also supported by “Human Resources Program in Energy Technology” of the Korea Institute of Energy Technology Evaluation and Planning (KETEP) , granted financial resource from the Ministry of Trade, Industry & Energy, Republic of Korea (No. 20194030202370 ).
Funding Information:
This work was supported by the Korea Institute of Energy Technology Evaluation and Planning (KETEP) and the Ministry of Trade, Industry & Energy (MOTIE) of the Republic of Korea (No. 20191210301820 ).
Publisher Copyright:
© 2022 The Author(s)
PY - 2022/11
Y1 - 2022/11
N2 - In pay-as-bid peer-to-peer (P2P) energy trading, various types of prosumers and consumers can participate, regardless of their offers. Thus, various types of participants impact the network differently. However, very few pay-as-bid P2P energy trading studies have specifically discussed appropriate compensation for network usage, although the market is implemented in existing utility-owned grids. Therefore, to improve the performance of pay-as-bid P2P energy trading, it is important to determine the appropriate compensation to utilities for network usage. This study aims to obtain an appropriate network cost allocation method for pay-as-bid P2P energy trading. Hence, the authors present a review of pay-as-bid P2P market mechanisms and various network cost allocation (NCA) methods. Additionally, a comprehensive evaluation framework is proposed to determine the most appropriate NCA method for the pay-as-bid P2P energy trading system. A comparison was made between various NCA methods to investigate the outcomes of the implementation of different NCA methods to various market conditions. The study constructs a case study based on the operator-oriented P2P model to represent the pay-as-bid P2P energy trading system. The simulation of pay-as-bid P2P energy trading with large participant number is applied in the IEEE 69-bus distribution system. The study concluded that applying the appropriate NCA method would improve the performance of pay-as-bid P2P energy trading operation.
AB - In pay-as-bid peer-to-peer (P2P) energy trading, various types of prosumers and consumers can participate, regardless of their offers. Thus, various types of participants impact the network differently. However, very few pay-as-bid P2P energy trading studies have specifically discussed appropriate compensation for network usage, although the market is implemented in existing utility-owned grids. Therefore, to improve the performance of pay-as-bid P2P energy trading, it is important to determine the appropriate compensation to utilities for network usage. This study aims to obtain an appropriate network cost allocation method for pay-as-bid P2P energy trading. Hence, the authors present a review of pay-as-bid P2P market mechanisms and various network cost allocation (NCA) methods. Additionally, a comprehensive evaluation framework is proposed to determine the most appropriate NCA method for the pay-as-bid P2P energy trading system. A comparison was made between various NCA methods to investigate the outcomes of the implementation of different NCA methods to various market conditions. The study constructs a case study based on the operator-oriented P2P model to represent the pay-as-bid P2P energy trading system. The simulation of pay-as-bid P2P energy trading with large participant number is applied in the IEEE 69-bus distribution system. The study concluded that applying the appropriate NCA method would improve the performance of pay-as-bid P2P energy trading operation.
KW - Evaluation framework
KW - Network cost allocation
KW - Network usage cost
KW - Pay-as-bid
KW - Peer-to-peer energy trading
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U2 - 10.1016/j.egyr.2022.10.405
DO - 10.1016/j.egyr.2022.10.405
M3 - Article
AN - SCOPUS:85141520811
SN - 2352-4847
VL - 8
SP - 14442
EP - 14463
JO - Energy Reports
JF - Energy Reports
ER -