A Novel Optimization Model for Pricing-based Energy Management in a Peer-to-Peer (P2P) Electricity Market

Document Type : Original Article

Authors

1 PhD student, Department of Industrial Engineering, Faculty of Engineering, Bu-Ali Sina University, Hamedan, Iran

2 Department of Industrial Engineering, Faculty of Engineering, Bu-Ali Sina University, Hamedan, Iran

10.22059/ses.2024.374651.1062

Abstract

In this paper, a bi-objective mixed-integer non-linear programming (MINLP) model is proposed to design a P2P electricity market for price-based energy management incorporating incentives and time-based demand response programs (DRPs), considering the active involvement of retailers. The proposed mathematical model was investigated for a hypothetical smart microgrid connected to the upstream grid, based on real data from Tehran, Iran. The results indicated that due to the Iranian government's policies on renewable energy, in all scenarios, a significant portion of the retail income comes from selling electricity to the wholesale market, and a considerable part of prosumers' costs is attributed to the deployment of energy generation systems to supply energy to the MG However, it can be argued that participating in the P2P market plays a significant role in reducing prosumers' costs. Furthermore, investigating the impacts of DRPs revealed that their implementation and price elasticity of demand increased retail and overall MG profit by up to 10.3% and 39.98%, respectively. Additionally, implementing DRPs benefits consumers (without DERs) in the MG.

Keywords

Main Subjects

References

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Journal of sustainable Energy Systems
Volume 3, Issue 1
January 2024
Pages 1-22

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