Catalyzing Sustainable Energy Transition in Oman: A Peer-to-Peer Energy Trading Model With Integrated GHG Emission Mitigation Strategies

Exploring the transformative potential of a peer-to-peer (P2P) energy trading model, this study examines how integrating greenhouse gas (GHG) emission mitigation strategies can facilitate a sustainable energy transition in Oman. This paper proposes a new P2P energy trading framework incorporating GHG credits to enable direct energy trading between prosumers and consumers in a decentralized network without intermediaries. The proposed framework prioritizes energy trading between prosumers based on their GHG credits. It employs the non-dominated sorting genetic algorithm-II (NSGA-II) to determine the energy and GHG selling prices by optimizing three objective functions: maximizing prosumers’ profits, minimizing consumers’ costs, and reducing the penalty associated with prosumers’ power loss factor (PLF) due to their use of the grid network. The NSGA-II algorithm constraints are investment-driven, with energy cost limits based on PV investment payback periods and GHG allowance cost limits derived from international GHG trading data. This approach ensures the social welfare of all participants while accounting for system losses incurred by transacting peers. The proposed framework was tested in different case studies on the IEEE 14-bus system with three prosumers and eight consumers by using data in Oman grid. The proposed framework concept offers a practical approach to energy trading that considers various operating conditions and potential losses, ensuring more efficient and resilient transactions within diverse market environments.