Techno-economic analysis of peer-to-peer energy markets with different market mechanisms

The energy demand across the world has been increasing exponentially over the past decade. There has been a widespread growth of small-scale distributed energy generation, which utilises the energy derived from renewable resources to support low-carbon electricity production techniques and schemes initiated by governments. This encompasses rooftop solar systems, behind-the-meter generation, residential energy storage systems and electric vehicle applications. To promote such local energy generation projects, many countries are offering incentives for microgrids, a miniature version of the utility grid with local generation and demand. This has instigated next generation techniques, called peer-to-peer (P2P) energy trading, where the;prosumers/consumers can buy or sell energy locally, which reduces their dependence on the utility grid.

It is important to investigate different market models and pricing strategies for enabling an in-depth techno-economic analysis of effective P2P energy trading mechanisms. In addition, there should be appropriate consideration of user preferences and behavioural patterns, without which the cost-effectiveness of such mechanisms cannot be achieved. In this PhD project, optimum P2P energy trading strategies considering different market models as well as pricing structures will be developed with an aim to achieve a trade-off between the profit and social utility objectives.

To be specific, the project will aim to address the following research;questions:

• How can the different market models and pricing structures influence the utilities of the participants in P2P energy markets?

• How to model;the correlation between individual participant’s trading decisions and overall market behaviour for different P2P market mechanisms?

• How to design;optimum trading strategies and pricing mechanisms while considering the uncertainty in renewable energy generation and energy consumption;behaviour?