A preference-based matching mechanism for participants in peer-to-peer energy market

Abstract

Due to an awareness of the climate change crisis and a cost reduction of renewable energy technology, more residential electricity consumers tend to install renewable energy technology in their homes and become prosumers. Consequently, an alternative energy market called peerto-peer energy market is introduced allowing these prosumers to trade energy with neighborhoods. This paper proposes a matching mechanism for participants in the peer-to-peer energy market which allows peers to match with preferred neighborhoods. This proposed mechanism can be applied with multiple peers’ preferences and also has no difference in matching results whether buyers or sellers start the matching process, which can be implied that equality among participants is secured. A matching mechanism between three buyers and three sellers is simulated in two scenarios. The first one is a scenario in which buyers start the matching process and sellers start the process in the second scenario. The simulation result shows that both matching results are identical.