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Economic and Climatic Impacts of Different Peer-to-Peer Game Theoretic–Based Energy Trading Systems

Rising energy demand and the disproportionate utilization of fossil fuels not only result in power imbalance and economic drain but also raise environmental concerns. Under these challenging circumstances, microgrids provide a tactical solution by adopting distributed energy resources at user end. However, this solution is not effective without enough participation by these end users (prosumers) for sustainable energy growth in microgrids. This paper presents a behavioral control theory and various psychological motivational models to improve prosumers’ participation up to the desired level. A framework for peers’ management within a community is also presented. The coalition-based game theory is employed for fair and trustworthy inter-trading which lead to the formation of grand coalition by satisfying all the defined motivational models. Various trading systems i.e. feed in tariff system, peer-to-peer trading with and without storage systems, and demand-side management-based peer-to-peer trading systems are used for energy inter-trading with minimum involvement with the grid. Finally, the proposed system is validated through simulations of various game theoretic-based peer-to-peer trading systems. Simulation results show a considerable reduction in average expenses for energy demand and carbon emissions with improved earnings for peers.