Network cost allocation methods for pay-as-bid peer-to-peer energy trading: A comparison

Noorfatima N., Choi Y., ÖNEN A., Jung J.

Energy Reports, vol.8, pp.14442-14463, 2022 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 8
  • Publication Date: 2022
  • Doi Number: 10.1016/j.egyr.2022.10.405
  • Journal Name: Energy Reports
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Compendex, INSPEC, Directory of Open Access Journals
  • Page Numbers: pp.14442-14463
  • Keywords: Peer-to-peer energy trading, Pay-as-bid, Network cost allocation, Network usage cost, Evaluation framework, TRANSMISSION COST, MARKET, SYSTEM, GENERATORS, AUCTIONS, USAGE, LOADS
  • Kayseri University Affiliated: No


© 2022 The Author(s)In pay-as-bid peer-to-peer (P2P) energy trading, various types of prosumers and consumers can participate, regardless of their offers. Thus, various types of participants impact the network differently. However, very few pay-as-bid P2P energy trading studies have specifically discussed appropriate compensation for network usage, although the market is implemented in existing utility-owned grids. Therefore, to improve the performance of pay-as-bid P2P energy trading, it is important to determine the appropriate compensation to utilities for network usage. This study aims to obtain an appropriate network cost allocation method for pay-as-bid P2P energy trading. Hence, the authors present a review of pay-as-bid P2P market mechanisms and various network cost allocation (NCA) methods. Additionally, a comprehensive evaluation framework is proposed to determine the most appropriate NCA method for the pay-as-bid P2P energy trading system. A comparison was made between various NCA methods to investigate the outcomes of the implementation of different NCA methods to various market conditions. The study constructs a case study based on the operator-oriented P2P model to represent the pay-as-bid P2P energy trading system. The simulation of pay-as-bid P2P energy trading with large participant number is applied in the IEEE 69-bus distribution system. The study concluded that applying the appropriate NCA method would improve the performance of pay-as-bid P2P energy trading operation.