Arbitrage strategy of renewable-based microgrids via peer-to-peer energy-trading

Nezamabadi, H and Vahidinasab, V ORCID: https://orcid.org/0000-0002-0779-8727, 2021. Arbitrage strategy of renewable-based microgrids via peer-to-peer energy-trading. IEEE Transactions on Sustainable Energy, 12 (2), pp. 1372-1382. ISSN 1949-3029

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Abstract

In this paper, an arbitrage strategy is proposed for renewable-based microgrids (MGs) to overcome the volatile behavior of renewable energy sources (RESs) such as photovoltaic and wind in a newly emerged business space in which peer-to-peer (P2P) energy-trading in transactive energy markets (TEMs) set up between a day-ahead market (DAM) and real-time markets (RTMs). To identify arbitrage opportunities created from the price difference between the P2P and real-time trades, a bi-level risk-constrained stochastic programming with interval coefficients (BRSPIC) is presented. In the first stage of the decision-making, scenarios are employed to deal with the DAM prices uncertainties. In the second stage, P2P energy-trading competition is modelled by a bi-level programming based on non-cooperative leader-follower games. While the social welfare of peers is maximized at the lower level, the MG maximizes its profit at the upper level. By getting closer to real-time, interval coefficients are considered in the third stage to cope with the uncertainties of RESs and loads, as well as RTM prices. The conditional value-at-risk (CVaR) is enforced the model to control the risk of profit variability. By using Karush-Kuhn-Tucker (KKT), the BRSPIC is transformed into a single level optimization. Then, it is linearized and solved by a mixed-integer linear programming (MILP) solver. By evaluating the proposed model on a test system, it is evident that the MG increases more than 3.1% of its profit by the arbitrage strategy. By considering CVaR, a fully risk-averse decision decreases the profit of MG by 27%, although it would be so conservative decision.

Item Type:	Journal article
Publication Title:	IEEE Transactions on Sustainable Energy
Creators:	Nezamabadi, H. and Vahidinasab, V.
Publisher:	Institute of Electrical and Electronics Engineers (IEEE)
Date:	April 2021
Volume:	12
Number:	2
ISSN:	1949-3029
Identifiers:	Number Type 10.1109/tste.2020.3045216 DOI 1639192 Other
Rights:	© 2020 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.
Divisions:	Schools > School of Science and Technology
Record created by:	Laura Ward
Date Added:	09 Feb 2023 09:16
Last Modified:	09 Feb 2023 09:16
URI:	https://irep.ntu.ac.uk/id/eprint/48203

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