An Optimal Peer-to-Peer Market Considering Modulating Heat Pumps and Photovoltaic Systems under the German Levy Regime

Abstract

The European Commission calls for more small-scale renewable energy producers to actively participate in the energy value chain. In this study, we model an illustrative peer-to-peer (P2P) market with tariffs based on the reservation prices of market participants under the German levy regime. The study is conducted by modeling representative residential buildings with home energy management systems, modulating heat pumps, and photovoltaics, in combination with electrical and thermal storage systems. The resulting mixed-integer linear program is solved over the course of a year, using a rolling horizon approach with a time resolution of one hour. By analyzing the cost- and discomfort-minimizing behavior of the market participants, we evaluate the current levy regime and propose two additional designs. We find that in the current case, a P2P market is not economically viable. Based on feed-in tariffs (FiT) and levies no agreeable market price can be found. With no FiT or reduced levies, all participants benefit from the P2P market. The market split—where each household sources their energy from—is altered only little by the specific details of the market design when staying in the agreeable price range. As prosumagers do not consume on the P2P market, they benefit only marginally from the reduced levies—consumers are most affected. Adjusting the regime could be a measure to rebalance the distribution of renewable energy benefits towards consumers in order to foster social cohesion. Our input data and the model written in the Julia JuMP programming language are available in an open-source format.

Incorporating Forecasting and Peer-to-Peer Negotiation Frameworks Into a Distributed Model-Predictive Control Approach for Meshed Electric Networks

“…2) if mod (k, k n ) = 0, do for all i ∈ V I solve (17) using a best reply updating until A Nash equilibrium {λ 0 i (•)} i∈V I is found. 3) if mod(k, Hk n ) = 0, do Utility grid solves (16) and updates λ 0 . 4) k → k + 1, go to 2.…”

“…An alternative way to tackle this problem is given in [15] where the authors of aim to link both market and control layers by employing similar P2P protocols in the power converter voltage regulation; their approach relies heavily on distributed optimisation techniques which highlights the need of distributed methods for regulation at lower levels. Receding horizon techniques have been used before in the context of P2P trading schemes as seen in [16], [17] where the prediction capabilities and the inherent constraint handling offer attractive properties for these type of trading platforms. Therefore, understanding the relation between both the market layer and its physical counterpart is crucial to ensure seamless operation of the MG.…”

How will local energy markets influence the pan-European day-ahead market and transmission systems? A case study for local markets in France and Germany

“…Different regulatory tax regimes have been proposed to facilitate LEMs. In [37], for the German regulatory regime of local trading an exemption of grid (and grid-related) fees and the electricity tax is proposed, whereas in [38] (also for Germany), reduced grid fees, reduced EEG surcharges 5 , and an exemption of the electricity tax are proposed. The authors in [36] propose a more detailed scheme, where especially the EEG surcharge is reduced and extended self-consumption rules are applied (especially for larger assets).…”

Success Factors for the Foundation of Municipal Utilities in Germany

“…In Germany, an increasingly competitive market environment has emerged since the liberalisation of the electricity markets. For incumbents, adapting quickly to the associated challenges involves significant changes [7]. The European Commission's clean energy package [8] will further accelerate changes in the electricity market.…”

“…Technical developments in decentralised renewables, sector coupling, storage technologies, electric mobil-ity and heat pumps offer opportunities, especially for smaller players, to actively participate in the energy value chain [6,7]. Smart meters, energy management systems and new possibilities for communication and control technologies, which can also integrate small plants into energy markets, are the main contributors to this [6,7,9]. This means that energy companies must offer their customers energy services that lead to energy savings and the expansion of renewable energies.…”