Novel Decentralized Peer-to-Peer Gas and Electricity Transaction Market between Prosumers and Retailers Considering Integrated Demand Response Programs

Abstract

This paper proposes a novel peer-to-peer (P2P) decentralized energy market consisting of retailers and prosumers considering integrated demand response (IDR). Retailers can trade electrical energy and gas with prosumers in a P2P way to maximize their welfare. Since they are equipped with electrical storage and power self-generation units, they can benefit from selling power not only to the upstream network but also to prosumers. In peer-to-peer transactions, the prosumers purchase electricity as well as gas from retailers. Because of their access to the competitive retail market, including some retailers, they enjoy more freedom to reduce their energy supply cost. In addition, the prosumers are equipped with an energy hub consisting of combined heat and power (CHP) units and electric pumps, allowing them to change their energy supply according to price fluctuations. Furthermore, they have some changeable electrical and thermal load enabling them to change their load if needed. To clear the proposed P2P decentralized market, a fully decentralized approach called the fully decentralized alternating direction method of multipliers (ADMM) is applied. This method does not require a supervisory entity and, thus, preserves the players’ private information. The numerical studies performed on a system with two retailers and multiple prosumers demonstrate the feasibility and effectiveness of the proposed decentralized market. The results also show that the proposed decentralized algorithm achieves the optimal global solution, compared with the centralized approach.