A New Risk-based Decentralized Model for Peer-to-Peer Energy Trading Among Smart Homes

Abstract

Smart homes could have a significant impact on supplying the demand of both household consumers and smart grid. The household consumers can trade energy via peer-to-peer (P2P) energy trading to reduce their cost. In other words, each of them can participate in the smart grid as a prosumer that can both produce and consume energy. On the other hand, the more participation of smart homes in the demand-side management (DSM) program could help to electricity decentralization. Also, the energy storage systems (ESSs) and distributed energy resources (DERs) can lead to further decentralization of a smart microgrid. The production of renewable energy resources, such as photovoltaic (PV) systems, are associated with uncertainty. The ESSs could able to be used as a reserve of PV systems. This paper presents a new risk-based model for P2P energy management of smart homes consist of PV system and EES and participate in the DSM program. The risk associated with the uncertainties of PVs’ production and market price has been modeled by conditional value-at-risk (CVaR). The mixed integer non-linear programming (MINLP) model of the problem has been solved by COUENNE in GAMS software. Numerical results show the expected cost of all resources and the related risk is reduced by the proposed decision making model for smart homes.

Keywords

• advanced metering infrastructure (ami)
• conditional value-at-risk (cvar)
• demand-side management (dsm)
• smart home