Two-Stage Bidding Strategy for Peer-to-Peer Energy Trading of Nanogrid

With more distributed energy resources penetrated into the residential community, nanogrid based peer-to-peer (P2P) energy market has rapidly emerged over recent years. Due to the complexities on the decision-making process of each market participant, an efficient, fair and beneficial oriented bidding strategy is thus necessary. In this article, a two-stage bidding strategy for P2P trading of nanogrid is proposed. To overcome the limitations of traditional methods, in the first stage, a supply-demand relationship considered two-step price predictor, which aims to promote the usage of local renewable energy, is formulated to provide the guidance on transaction adjustment. In the second stage, trading preference based simultaneous game-theoretic approach is fully introduced, which can optimize the market equilibrium and then increase the social welfare of the P2P market. Additionally, to mitigate the possible failure of price matching, value-at-risk is implemented through the trading process as a risk hedging tool. To verify the effectiveness of the proposed strategy, usages of local renewable energy, economic benefits and success rates of transaction is compared against the traditional method for various cases.