Optimal Local Energy Trading considering Network Cost via Hotelling Game

Yajun Zhang; Chenghong Gu; Furong Li; Mill Zhang

doi:10.1109/CIEEC47146.2019.CIEEC-2019129

Optimal Local Energy Trading considering Network Cost via Hotelling Game

Yajun Zhang
, Chenghong Gu
, Furong Li
, Mill Zhang

Taiyuan Power Supply Company

Research output: Chapter or section in a book/report/conference proceeding › Chapter in a published conference proceeding

Abstract

With the high penetration of distributed renewable resources, local energy trading makes it possible to trade energy from local renewable sources, such as small-scale photovoltaics panels and wind turbines. In this paper, a novel Hotelling Game based local energy trading is proposed in this paper to determine the optimal strategies of the minimum total costs. Both network cost of transportation and energy cost of generation are considered in the trading decision-making. The network cost is determined based on the MW-Mile method to reflect the usage of the network in energy trading. The local trading is modelled as a Hotelling Game and the optimal trading strategies can be obtained for the customer to minimize their energy bill. The proposed energy trading method is demonstrated on a representative system to illustrate the significance of network cost in the local trading scenario.

Original language	English
Title of host publication	Proceedings of 2019 IEEE 3rd International Electrical and Energy Conference, CIEEC 2019
Publisher	IEEE
Pages	246-251
Number of pages	6
ISBN (Electronic)	9781728116754
DOIs	https://doi.org/10.1109/CIEEC47146.2019.CIEEC-2019129
Publication status	Published - 27 Apr 2020
Event	3rd IEEE International Electrical and Energy Conference, CIEEC 2019 - Beijing, China Duration: 7 Sept 2019 → 9 Sept 2019

Publication series

Name	Proceedings of 2019 IEEE 3rd International Electrical and Energy Conference, CIEEC 2019

Conference

Conference	3rd IEEE International Electrical and Energy Conference, CIEEC 2019
Country/Territory	China
City	Beijing
Period	7/09/19 → 9/09/19

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

Hotelling game
local energy market
local energy trading
network cost

ASJC Scopus subject areas

Computer Networks and Communications
Hardware and Architecture
Energy Engineering and Power Technology
Electrical and Electronic Engineering
Safety, Risk, Reliability and Quality
Control and Optimization

Access to Document

10.1109/CIEEC47146.2019.CIEEC-2019129

Cite this

Zhang, Y., Gu, C., Li, F., & Zhang, M. (2020). Optimal Local Energy Trading considering Network Cost via Hotelling Game. In Proceedings of 2019 IEEE 3rd International Electrical and Energy Conference, CIEEC 2019 (pp. 246-251). Article 9077062 (Proceedings of 2019 IEEE 3rd International Electrical and Energy Conference, CIEEC 2019). IEEE. https://doi.org/10.1109/CIEEC47146.2019.CIEEC-2019129

Optimal Local Energy Trading considering Network Cost via Hotelling Game. / Zhang, Yajun; Gu, Chenghong ; Li, Furong et al.
Proceedings of 2019 IEEE 3rd International Electrical and Energy Conference, CIEEC 2019. IEEE, 2020. p. 246-251 9077062 (Proceedings of 2019 IEEE 3rd International Electrical and Energy Conference, CIEEC 2019).

Research output: Chapter or section in a book/report/conference proceeding › Chapter in a published conference proceeding

Zhang, Y, Gu, C , Li, F & Zhang, M 2020, Optimal Local Energy Trading considering Network Cost via Hotelling Game. in Proceedings of 2019 IEEE 3rd International Electrical and Energy Conference, CIEEC 2019., 9077062, Proceedings of 2019 IEEE 3rd International Electrical and Energy Conference, CIEEC 2019, IEEE, pp. 246-251, 3rd IEEE International Electrical and Energy Conference, CIEEC 2019, Beijing, China, 7/09/19. https://doi.org/10.1109/CIEEC47146.2019.CIEEC-2019129

Zhang Y, Gu C , Li F, Zhang M. Optimal Local Energy Trading considering Network Cost via Hotelling Game. In Proceedings of 2019 IEEE 3rd International Electrical and Energy Conference, CIEEC 2019. IEEE. 2020. p. 246-251. 9077062. (Proceedings of 2019 IEEE 3rd International Electrical and Energy Conference, CIEEC 2019). Epub 2019 Sept 9. doi: 10.1109/CIEEC47146.2019.CIEEC-2019129

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title = "Optimal Local Energy Trading considering Network Cost via Hotelling Game",

abstract = "With the high penetration of distributed renewable resources, local energy trading makes it possible to trade energy from local renewable sources, such as small-scale photovoltaics panels and wind turbines. In this paper, a novel Hotelling Game based local energy trading is proposed in this paper to determine the optimal strategies of the minimum total costs. Both network cost of transportation and energy cost of generation are considered in the trading decision-making. The network cost is determined based on the MW-Mile method to reflect the usage of the network in energy trading. The local trading is modelled as a Hotelling Game and the optimal trading strategies can be obtained for the customer to minimize their energy bill. The proposed energy trading method is demonstrated on a representative system to illustrate the significance of network cost in the local trading scenario.",

keywords = "Hotelling game, local energy market, local energy trading, network cost",

author = "Yajun Zhang and Chenghong Gu and Furong Li and Mill Zhang",

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booktitle = "Proceedings of 2019 IEEE 3rd International Electrical and Energy Conference, CIEEC 2019",

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N2 - With the high penetration of distributed renewable resources, local energy trading makes it possible to trade energy from local renewable sources, such as small-scale photovoltaics panels and wind turbines. In this paper, a novel Hotelling Game based local energy trading is proposed in this paper to determine the optimal strategies of the minimum total costs. Both network cost of transportation and energy cost of generation are considered in the trading decision-making. The network cost is determined based on the MW-Mile method to reflect the usage of the network in energy trading. The local trading is modelled as a Hotelling Game and the optimal trading strategies can be obtained for the customer to minimize their energy bill. The proposed energy trading method is demonstrated on a representative system to illustrate the significance of network cost in the local trading scenario.

AB - With the high penetration of distributed renewable resources, local energy trading makes it possible to trade energy from local renewable sources, such as small-scale photovoltaics panels and wind turbines. In this paper, a novel Hotelling Game based local energy trading is proposed in this paper to determine the optimal strategies of the minimum total costs. Both network cost of transportation and energy cost of generation are considered in the trading decision-making. The network cost is determined based on the MW-Mile method to reflect the usage of the network in energy trading. The local trading is modelled as a Hotelling Game and the optimal trading strategies can be obtained for the customer to minimize their energy bill. The proposed energy trading method is demonstrated on a representative system to illustrate the significance of network cost in the local trading scenario.

KW - Hotelling game

KW - local energy market

KW - local energy trading

KW - network cost

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ER -

Optimal Local Energy Trading considering Network Cost via Hotelling Game

Abstract

Publication series

Conference

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

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