A motivational game-theoretic approach for peer-to-peer energy trading in islanded and grid-connected microgrid

Global warming has made the transition to zero-carbon emissions generation a necessity for a healthy and green society. This requires that the dependability on the main grid, which is mostly driven by fossil fuel, natural gas, and coal, be reduced. Peer-to-peer (P2P) energy trading has been proposed to achieve this objective. However, the success of such trading depends on the fulfillment of energy-related objectives of participants. The identification of energy-related objectives of participants and their fulfillment is a challenging task. For this purpose, this paper proposes a game-theoretic approach to motivate prosumers for P2P energy trading in both the is landed and grid-connected modes. First, a model that addresses the basic energy-related objectives of both producers and consumers is proposed along with the layered architecture of P2P market to identify and categorize the existing technologies. Then, an extensive form game based on non-cooperative game theory is described and the existence of its strict Nash equilibrium is evaluated. An energy allocation policy has also been devised that motivates prosumers by ensuring that none of them exits the market without trading irrespective of the balance between supply and demand. The proposed energy trading scheme is evaluated on the IEEE-14 bus system with 8 producers and 11 consumers as market participants. We performed comprehensive experiments and the results of these experiments are compared with the previous studies and found that 33% to 7% reduction in energy bills of the consumers is achieved from the proposed scheme which boldly shows the effectiveness of the proposed scheme.