Post Facto Calculation of Peer to Peer Transactions: Proportional and Preferential Energy Sharing Models

Abstract

Global rooftop solar grows at a rate of 20.14% annually, according to global solar consortium energypedia. Conventionally prosumers sell excess solar generated to the utility grid using a feed-in-tariff policy. Feed-in-tariff policy is effective if the grid is the only customer, but prosumers with peer-to-peer (P2P) tariff mechanism yield better profits to prosumers and energy savings to consumers. Existing P2P energy-sharing models are computationally intensive and have scalability issues. Further it’s difficult to implement in the real world. To overcome these problems, this paper proposes two post-facto P2P energy-sharing models. One is the preferential energy sharing model (PES) where consumer and prosumer pairs are ranked based on energy generated and consumed. The second model is the proportional energy sharing model (PRES) where consumer energy generated and consumed are shared proportionally. Both models are illustrated using seasonal variations by comparing with feed-in tariff policy and observed an effective reduction of bills for consumers and increased profit of prosumers. The results concluded that microgrids with excess solar will profit more when they are in the PRES model, whereas microgrids with significant demand will benefit when they are in the PES model. Further, PRES model executes in 107 milliseconds, and the PES model executes in 52 milliseconds. These results show that the proposed models are computationally less intensive and easily scalable.

Keywords:

• microgrids
• peer to peer
• energy sharing
• transactive energy

DISCLOSURE STATEMENT

No potential conflict of interest was reported by the author(s).

Additional information

Funding

Thanks to TCS Foundation for providing the funding under TCS Research Scholarship Program. Thanks to Pencan Street data for providing the data under an academic license.

Notes on contributors

Vikram Cherala

Vikram Cherala received the B.Tech degree in Electrical and Electronics Engineering from Kakatiya Institute of Technology and Science Warangal affiliated to Kakatiya University Warangal, India in 2012 and the M.Tech degree in Energy Technology from National Institute of Technology Hamirpur, India in 2018. He is pursing his PhD degree from IIT Hyderabad. He has three year of experience TCS as software engineer. He is the recipient of TCS Research Scholarship award. His research interests include Smart Grids, Demand Response, Energy Management, Energy Monitoring Systems, Machine Learning, Energy Markets, Artificial Intelligence, and Data Analytics.

Charan Teja S

Charan Teja S received the B.Tech degree in Electrical and Electronics Engineering from DVR Dr. HS MIC College of Technology affiliated to Jawaharlal Technological University Kakinada, India in 2009 and the M.Tech degree in Control Systems from National Institute of Technology Kurukshetra, India in 2012. He obtained his PhD degree from IIT Hyderabad. He worked as a postdoctoral fellow at IIT Hyderabad. He has one year of teaching experience in the Faculty of electrical and mechanical department in the College of Military Engineering, Pune, India. His research interests include Smart Grids, Demand Response, Energy Management, Energy Monitoring Systems, Machine Learning, Artificial Intelligence, and Data Analytics.

Pradeep Kumar Yemula

Pradeep Kumar Yemula is an Associate Professor at the Department of Electrical Engineering, Indian Institute of Technology Hyderabad (IITH). He has a Master’s Degree (2006) and a Ph.D. (2012) from the Indian Institute of Technology Bombay (IITB). He is a member of IEEE and PES society and participates regularly in IEEE conferences. His research areas include Information architectures for power control centers, Common Information Models, Smart Cities, Interoperability, Demand Response, IoT applications in and Standards for Smart Grids. Prior to joining IITH, he worked as an Assistant Research Professor at the School of Electrical and Electronics Engineering at Washington State University, WA, Pullman, USA. He is a member of the Power system control and associated communications (LITD 10) committee under the Bureau of Indian Standards (BIS).