Distributed Framework for P2P Energy Sharing among Building Prosumers using Stackelberg Game

Abstract

Rising electricity demand, evolving consumption patterns and distributed generation have resulted in emergence of buildings as strategic players in the active distribution network. Owing to local generation, buildings have emerged as prosumers, capable of sharing energy within their community, also known as Peer to Peer (P2P) energy sharing. Accordingly, a P2P energy sharing model for building prosumers has been presented in this paper. The proposed scheme includes a Stackelberg game model consisting of building prosumers and system operator as players. Stackelberg equilibrium has been obtained, and its existence and uniqueness have been proved. A distributed algorithm has been formulated for optimizing internal trading prices and consumption while maximizing players’ profits. In addition, detailed discussion has been presented on parameter tuning and its effect on performance of the proposed scheme. Further, an incentive re-distribution mechanism has been formulated for rewarding prosumer participation in peak hours. Simulation results depict effectiveness and verification of the proposed scheme.