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A New Method for Peer Matching and Negotiation.pdf (1.83 MB)

A New Method for Peer Matching and Negotiation of Prosumers in Peer-to-Peer Energy Markets

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journal contribution
posted on 2021-03-29, 03:53 authored by Mohsen Khorasany, Amrit PaudelAmrit Paudel, Reza Razzaghi
This paper presents a scalable mechanism for peer-
to-peer (P2P) energy trading among prosumers in a smart grid.

In the proposed mechanism, prosumers engage in a non-mediated
negotiation with their peers to reach an agreement on the price
and quantity of energy to be exchanged. Instead of concurrent
bilateral negotiation between all peers with high overheads, an
iterative peer matching process is employed to match peers
for bilateral negotiation. The proposed negotiation algorithm
enables prosumers to come to an agreement, given that they
have no prior knowledge about the preference structure of their
trading partners. A greediness factor is introduced to model the
selfish behavior of prosumers in the negotiation process and
to investigate its impact on the negotiation outcome. In order
to recover the costs related to power losses, a transaction fee
is applied to each transaction that enables the grid operator
to recover incurred losses due to P2P trades. The case studies
demonstrate that the proposed mechanism discourages greedy
behavior of prosumers in the negotiation process as it does not
increase their economic surplus. Also, it has an appropriate
performance from the computation overheads and scalability


Australian Renewable Energy Agency


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