A Peer-to-Peer Energy Trading Framework for Wind Power Producers With Load Serving Entities in Retailing Layer

Abstract

This article proposes a peer-to-peer (P2P) energy trading framework for wind power producer (WPP) in the retailing layer to increase its revenue and to promote wind power utilization. In this framework, the WPP can provide energy consumption of demand response providers (DRPs) in a competitive environment through both the main grid and rival load-serving entities. Also, based on a P2P pricing mechanism, the WPP can choose if to trade energy in a P2P platform or not. The proposed problem is formulated as a stochastic bilevel optimization model, in which in the upper level, the WPP profit is maximized and in the lower level, the DRPs participate in DR programs and tend to choose the fairest supplier among the WPP and LSEs to minimize their energy procurement costs. The proposed method is applied to a realistic case study and the results demonstrate that with P2P, the WPP can schedule the energy transaction with peers to offset part of the energy deviations. Moreover, different values of P2P prices lead to different values of energy transactions due to the relatively diversity pattern of local generation of rival LSEs and their offering prices and demand and generation of the WPP.