Impact of optimal capacity of storage units in residential houses for P2P energy trading

The rapid growth of distributed energy resources (DERs) in residential areas has paved the way for innovative energy management strategies. Peer-to-peer (P2P) energy trading emerges as a promising solution, allowing homeowners to exchange excess energy directly. However, optimal integration of energy storage systems within P2P networks presents a complex challenge. This study investigates the relationship between individual home energy storage optimization and overall P2P network effectiveness, exploring whether maximizing individual storage capacity aligns with fostering robust P2P energy exchanges. The proposed methodology optimizes energy storage and solar panel investments for each household within a microgrid that engage in P2P trading, considering daily electricity consumption, time-of-use pricing, and net metering. We analyze 48 residential houses within the IEEE 123 bus distribution system, comparing scenarios with random, sub-optimal storage capacities and optimal capacities. The P2P network with sub-optimal storage capacities demonstrates significantly higher cost savings compared to optimal capacities. This counterintuitive result suggests that when houses optimize their storage, they minimize costs to such an extent that little excess energy remains for P2P trading. Sub-optimal capacities, while less efficient individually, create more opportunities for beneficial exchanges within the network. These findings highlight the complex interplay between individual and community-level energy management. To maximize P2P trading advantages, a strategic balance between individual optimization and network-level energy availability may be necessary. This challenges conventional approaches to storage sizing in P2P contexts, suggesting future smart grid designs sh ould consider collective network benefits alongside individual optimizations.