Game theoretic Bidding Approach for Peer-to-Peer Trading

Lowering carbon emissions requires renewable energy penetration, but due to space, environmental constraints and unnecessary transmission cost, distributed generation is introduced. To promote small scale distributed energy sources, peer-to-peer trading is proposed. A system to settle the local energy market is required with fair/unbiased opportunity for all the consumers interested in buying/ selling of surplus power. Such consumers, or prosumers, are primarily interested in reducing their own electricity bill. This work presents a transactive energy solution with multi-level bidding approach in a non-cooperative game to obtain Nash equilibrium, which is visually proven correct.