Volume 2: Innovative Solutions for Energy Transitions: Part I

Research on Bidding Strategy Based on Evaluation Mechanism for Peer-To-Peer Energy Trading in Microgrid Dan Wang , Pengfei SU, Bo Liu , Qi Yang , Xiangtao Sun , Yunian Chen

Abstract

Under the liberalization of the retail electricity market, peer to peer (P2P) energy trading between households in microgrid are more economical. This paper discusses the bidding strategy based on evaluation mechanism for P2P energy trading in microgrid. The main focus is how to reduce the cost of electricity consumption of households and the impact caused by the intermittent and volatility of distributed sources such as photovoltaics (PV) by limiting the selfish behaviors of households in microgrid. Firstly, based on the characteristics of the electricity market, an evaluation mechanism based on the analytic hierarchy process (AHP) for energy auction is proposed to evaluate the energy service level of households and constrain the selfish behavior of households in microgrid. Secondly, the bidding strategy based on evaluation mechanism for P2P energy trading in microgrid is established. Moreover, based on the economic principle, the electricity supply and demand relationship of the household is quantitatively determined by the Household Electricity Supply and Demand Ratio (HESDR) and the energy valuation of household is defined. Finally, through the simulation of actual examples, the effectiveness of the proposed model in reducing the net cost of electricity for households and the impact on the grid are verified.

Keywords electricity market; peer-to-peer; household electricity supply and demand ratio; evaluation mechanism; electricity auction