Fair Pricing in Transactive Energy Management for Peer-to-Peer Trading: A Shapley Value Analysis Using Game theory

As decentralised energy systems grow more popular, the integration of transactive energy management and fair pricing mechanisms becomes more important in allowing efficient and equitable peer-to-peer energy trading. Using a Shapley value method, this paper investigates the use of transactive energy management with fair pricing in the context of peer energy trading. The paper’s goal is to provide a framework for optimising energy transfers by considering the contributions of individual participants and their interactions. This paper assesses the fairness of trading prices by quantifying the value of each player adds to the energy trading ecosystem using Shapley values. The Shapley value method considers the dynamic nature of peer-to-peer energy trading and supports two separate value functions, allowing for a thorough examination of fair pricing. Furthermore, to precisely quantity individual costs or savings, this paper integrates critical elements such as energy pricing and power loss. This paper’s results add to a better understanding of transactive energy management, fair pricing, and peer energy trading.