A k-Factor Continuous Double Auction-Based Pricing Mechanism for the P2P Energy Trading in a LV Distribution System

Abstract

With the development and low-cost trend of renewable energy technologies, particularly PV rooftop systems, energy consumers can produce electricity to self-consume and/or export the surplus energy into low-voltage (LV) distribution grids. The peer-to-peer (P2P) energy trading widely allows consumers with a generation role, called prosumers, to trade their surplus energy with other prosumers. The purpose of this study is to investigate how to impose the exchanged price between two P2P participants by using the k-factor continuous double auction (CDA) algorithm to scale up/down between seller’s offers and buyer’s bids submitted in the P2P energy trading. The k-factor is set to be varied between 0 and 1. The simulation results, based on the case study, show that the approximated value of k as of 0.6445 which is such that the benefits between sellers and buyers are equal is feasible. This states that the exchanged price between two participants can be formed with a combination between 64.45% and 35.55% of the buyer’s outstanding bid and the seller’s outstanding offer, respectively.