A Reserved Pricing Mechanism for Nano/Peco Smart Grid Peer-to-Peer Energy Trading

This work introduces a Nano/Pico smart grid energy market model where a market operator (MO) manages price determination for local peer-to-peer (P2P) energy trading among distributed energy resource (DER) sellers and buyers. The MO determines trading prices based on reserved pricing models, factoring in the minimum and maximum price ranges proposed by sellers and buyers. In this framework, the MO calculates the supply-to-demand ratio (SDR) to classify the market into buyers', sellers', or equilibrium modes. The objective is to minimize buyers' bills or maximize sellers' revenues depending on the market mode. The model's effectiveness is evaluated using a dataset from a small community with five buyers and five sellers. Comparative analysis with existing methods demonstrates that the proposed model significantly enhances sellers' profitability and provides substantial savings for buyers. Through the simulation results it is worth noting that the proposed model increases the revenues of the sellers from 17% to 7% compared with the other state-of-the-art methods. Whereas, energy bills for the buyers can also be reduced from 24% to 12%. This percentage increase in revenues and reduction in energy bills validates the proposed model's efficiency and effectiveness compared to the other state-of-the-art methods.