Designing a Peer-to-Peer Energy Trading Market to Improve Prosumer Participation in a Community: A Numerical Case Study

Peer-to-peer (P2P) energy trading has emerged as a transformative approach to electrical power distribution, empowering individuals and communities to directly exchange energy resources within local networks. Challenges arise in modeling the behavior of prosumers (market participants who can both buy and sell electricity). Understanding how prosumers interact in the market is crucial for determining prices and the feasibility of energy transactions. Their decisions to buy or sell energy depend on various factors, which influence market dynamics and the overall success of P2P energy trading. This paper proposes a trilevel framework for buyers who determine their purchase quantities and the fraction of power to purchase from each seller. Sellers determine the prices that maximize profit based on the buyer's demand. A numerical case study involving five prosumers - two sellers and three buyers - is presented and results in an equilibrium state for prosumer transactions in this P2P energy trading market. The trilevel approach successfully balances supply and demand in the P2P energy market where the sellers maximize revenue by adjusting prices and buyers meeting their energy demands.