Journal of Green Energy Research and Innovation
Quarterly

An Electricity Market Pricing Model Based on Load Demand in a Microgrid Using a Community Peer-To-Peer Approach

Document Type : Research article

Author

Arash Rahimi

Electricity Market Department, Electricity Distribution Company of Khuzestan, Ahvaz, Iran.

https://doi.org/10.61186/jgeri.2.1.44
Abstract
In this paper, a new peer-to-peer (P2P) pricing mechanism based on Flexi User and Pool Hub schemes is proposed in a community of buyers using battery storage systems to ensure that all customers in a community enjoy economic benefits. The proposed mechanism does not only consider the power surplus and shortage relationship, but also considers the power grid Real-Time Price (RTP) and Feed-in Tariff (FiT), which reflects the power system demand, where the price is high during peak demand and lower during off-peak. Demand is then implemented by a demand response (DR) program to encourage consumers to manage energy consumption, reduce stress on the power grid, and ensure that energy exchange between peers does not violate grid constraints. Results show that in addition to demand response in the grid, in the Flexi User scenario, the total savings to society from the combination of storage and P2P collaboration lead to a 24.25% reduction in electricity bills compared to a reference case (neither storage nor P2P trading). While the monetary savings in the Pool Hub market is up to 25.53%, this requires more direct P2P trading of distributed energy resources.

Graphical Abstract

An Electricity Market Pricing Model Based on Load Demand in a Microgrid Using a Community Peer-To-Peer Approach

Highlights

❖ Proposes an energy exchange method and models energy pricing.
❖ Balances user and microgrid interests using game theory to encourage microgrid participation.
❖ Accounts for uncertainties in wind and solar energy production, impacting market pricing.
❖ Assigns fair prices for energy loads based on the unique characteristics and facilities of each microgrid.

Keywords

Electricity market
Microgrid
Peer to Peer (P2P)
Energy management
Demand response

 

Declaration of competing interest
The author declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

Credit Authorship Contribution Statement

Arash Rahimi: Conceptualization, Data curation, Formal analysis, Funding acquisition, Investigation, Methodology, Project administration, Resources, Software, Supervision, Validation, Visualization, Roles/Writing-original draft, Writing-review & editing.

Bibliography
Arash Rahimi :was born in Ahvaz, Iran in 1989. He received his bachelor's and master's degrees in Power Systems Engineering from Shahid Chamran University of Ahvaz in 2012 and 2015. He is currently a Ph.D. student of Power Systems Engineering at Shahid Chamran University of Ahvaz. His main interests include Electrical Energy Distribution Systems, Electricity Market, Operation, Microgrids, and Protection of Power Systems.


Citation
A. Rahimi, " An Electricity Market Pricing Model Based on Load Demand in a Microgrid Using a Community Peer-To-Peer Approach," Journal of Green Energy Research and Innovation, vol. 2, no. 1, pp. 44-56, 2025.

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  • Receive Date 30 May 2024
  • Revise Date 26 July 2024
  • Accept Date 28 July 2024
  • Publish Date 01 March 2025

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