Developing a new framework for transactive peer‐to‐peer thermal energy market

Abstract

Abstract The rapid deployment of district heating systems in local energy markets and increasing the number of small‐scale heat producers along with the expansion of local electricity markets increase the need for a transaction framework to manage the transactions between local participants in both heat and electricity markets. This paper presents a peer‐to‐peer thermal energy transaction framework to manage the transactions between small‐scale heat prosumers. This framework enables small‐scale thermal energy producers and consumers to participate in the market as price maker agents. Moreover, the optimal strategy of heat market participants is determined by proposing a linear profit function for each agent. This optimization problem enables the agents to determine their optimal participation strategy in electricity and heat markets by addressing the interdependencies of electricity market, gas price, and heat market. The numerical results successfully demonstrate the benefits and applicability of the proposed framework.

Keywords

• Thermal power stations and plants
• Space heating
• Optimisation techniques
• Optimisation techniques
• Power system management, operation and economics
• Power engineering computing