Peer-To-Peer Trading Among Microgrid Prosumers in Local Energy Markets

This chapter investigates the transformative potential of Peer-to-Peer (P2P) trading in local energy markets, emphasizing the role of distributed energy resources in facilitating efficient market operations and fostering sustainable energy practices. The text first provides a foundational understanding of local energy markets, highlighting their definition and significance, and introduces the emergent concept of P2P energy trading among prosumers, with a focus on the microgrid and nanogrid levels. It underscores the advantages of such trading, including improved energy efficiency, enhanced grid reliability, and the promotion of renewable energy sources. Further, the chapter delves into the specifics of P2P ancillary service trading, with particular attention to frequency regulation support among microgrid and nanogrid prosumers, exploring its operational benefits and contribution to grid stability. Advancing the discussion, the text introduces a novel aspect of P2P markets—the carbon emission auction trading within local energy spheres. This section probes the theoretical and practical implications of integrating carbon emission considerations into energy trading and examines the market mechanisms through which microgrid prosumers might interact within this innovative paradigm. The chapter is structured into two principal sections. The first addresses P2P energy and ancillary service trading among nanogrid prosumers within a microgrid setting, focusing on real-time market operations for energy balancing and frequency regulation. The second section examines the interconnections between P2P energy, ancillary service, and carbon emission quota trading among multiple microgrid prosumers, presenting advanced modeling techniques and algorithms such as the multi-agent deep deterministic policy gradient for strategy optimization and risk mitigation. The chapter concludes with a synthesis of the explored concepts, reinforcing the significance of P2P trading in advancing the decarbonization of local energy markets and its potential for incentivizing the adoption of green technologies. It offers insights into the market structures, strategic behaviors of prosumers, and the envisioned impact on the overarching energy landscape.