Potential Benefits for Residential Building with Photovoltaic Battery System Participation in Peer-to-Peer Energy Trading

Abstract

The increasing number of residential buildings that are installing distributed energy resources enforces the need for schemes to facilitate a local energy balance. With the continuing evolution of Internet of Things (IoT) technology, Peer-to-Peer (P2P) energy trading is becoming a viable solution to incentivize prosumers and promote efficient energy sharing in a community. This paper develops a model to quantitatively analyze the potential benefits of P2P energy trading for residential buildings that have installed photovoltaic battery systems. The integration of the bidding strategy into a residential energy-management system is feasible to realize cost savings for prosumers. However, the coordination between the bidding strategy and the optimal scheduling of energy has received far too little attention. To better participate in the P2P market, we propose a novel separate bidding energy-management system (SBEMS) that can realize rolling optimal energy scheduling while determining energy bids. The model’s effectiveness is verified via case studies of 75 participants in a community. The results indicate that the prosumers can reduce their costs by up to 24% by employing the proposed SBEMS in the P2P market. In addition, the proposed method is found to offer better performance in terms of economic and technical indices.