Developing a peer-to-peer energy trading model for battery storage considering carbon emission permission

Abstract

The growing concern regarding climate change has prompted system planners and operators to prioritize transitioning towards zero-carbon emission policies, a crucial issue for a sustainable and eco-friendly society. This necessitates a reduced reliance on the utility grid, which is predominantly powered by fossil fuels. In this regard, the rapid penetration of renewable-based distributed energy resources and battery storage (BS) devices into distribution networks underscores the critical significance of optimizing the efficient utilization of these resources. Peer-to-peer (P2P) energy trading is introduced as a promising innovation, enabling these resources to actively manage their scheduling in the local market environment. This paper proposes a novel P2P energy trading model where agents, e.g., BSs, engage in direct negotiations with each other and the upstream grid simultaneously. To this end, an efficient peer-matching process based on the primal–dual gradient method is proposed to clear the local market without the intervention of any central coordinator, while preserving their privacy and considering their individual preferences. Furthermore, to incorporate the constraints associated with the exchanged power with the upstream grid and carbon emissions in the proposed framework, two separate transactive control signals are defined. Finally, the proposed model is applied to a case study, and the simulation results demonstrate its effectiveness and applicability.