Analysis and Testbed Demonstration of Electricity Product Differentiation in a Bilateral Negotiation based Peer-to-Peer Transactive Energy Market

Though several peer-to-peer (P2P) electrical energy market concepts are proposed in the recent literature, their physical implementation aspect has been largely overlooked. In this paper, a practically implementable decentralized transactive energy (TE)-based P2P market framework with product differentiation (PD) has been proposed and demonstrated in a physical distribution testbed. The required entities and distribution system models, PD preferences (for both buyers and sellers), multi-agent system-based problem formulation and market clearing algorithm are clearly explained. Subsequently, the pre-deployment experimental testbed setup utilized for the demonstration, with the constituting resources, is discussed. The testbed experimentation of the proposed framework is carried out for various scenarios of PD based on seller and buyer preferences while having solar/wind generation as the renewable energy producer (REP), which demonstrates the increase in revenue for the solar (6.7%) and wind (3.6%) energy producers in buyer preference and revenue agnostic seller preference. The segregated presentation of SCADA-GUI results and metered results from the testbed respectively shows (i) successful implementation of the PD-enabled TE-based P2P market and (ii) successful dispatch/control of commercial testbed entities through communication while adhering to system constraints.