Risk Implemented Simultaneous Game-Theoretic Approach for Energy Trading in Residential Microgrids

Abstract

With the promoting of residential microgrids, peer-to-peer (P2P) energy trading market among small household entities have emerged. In order to improve the flexibility of transactions and financial benefits for each participants, game-theoretic approaches have been widely investigated in recent studies. However, in current studies, these approaches still have some problems, such as the limitation of the number of participants and some unfair constraints on trade. To solve these problems, this paper proposes a simultaneous game-theoretic approach in the P2P energy trading. Proposed approach overcame the limits on participants’ number in this approach, and gives all participants equal rights to decide their trading prices for maximizing their own benefits. Besides, aiming to mitigate a potential risk of transaction failure in the simultaneous game-theoretic approach, a tool for risk analysis, “Value at Risk” (VaR), is also implemented into this approach. Through the VaR, participants could control their trading prices in a reasonable range to ensure successful energy trading. Moreover, case studies with multiple households involved in a residential microgrid confirm the effectiveness of the risk implemented simultaneous game-theoretic approach.