A Multi-Objective Optimization Framework for Peer-to-Peer Energy Trading in South Korea’s Tiered Pricing System

Abstract

This study proposes a multi-objective optimization framework for peer-to-peer (P2P) energy trading in South Korea’s tiered electricity pricing system. The framework employs the Multi-Objective Evolutionary Algorithm based on Decomposition (MOEA/D) to optimize three conflicting objectives: minimizing consumer costs, maximizing prosumer benefits, and enhancing energy utilization. Using real microgrid data from a South Korean community, the framework’s performance is validated through simulations. The results highlight that MOEA/D achieved an optimal cost of KRW 32,205.0, a benefit of KRW 32,205.0, and an energy utilization rate of 57.46%, outperforming the widely used NSGA-II algorithm. Pareto front analysis demonstrates MOEA/D’s ability to generate diverse and balanced solutions, making it well suited for regulated energy markets. These findings underline the framework’s potential to improve energy efficiency, lower costs, and foster sustainable energy trading practices. This research offers valuable insights for advancing decentralized energy systems in South Korea and similar environments.

Keywords

• energy trading
• microgrid
• optimization
• P2P
• tiered pricing