Dynamic Programming Based Peer-to-Peer Energy Trading Framework for Smart Microgrids

With a global increase of distributed generation, the power grids are becoming complex and demand more flexible and intelligent control systems. Distributed generation also creates need for effective peer-to-peer energy market where multiple sellers and buyers transact energy within. This paper suggests a trading market platform designed for making peer-to-peer (P2P) energy transactions. The problem is formulated in terms of Knapsack 0-1 Problem and Dynamic Programming Algorithm is implemented to bring maximum financial benefit to prosumers. Case study is presented for a microgrid of 1 seller and 4 buyers and simulation results show that during every auction seller gets the highest economic surplus, while consumers get locally produced energy at cheaper than grid price.