A Motivational Game-Theoretic Approach for Peer-to-Peer Energy Trading in the Smart Grid (1903.03922v1)

Abstract: Peer-to-peer trading in energy networks is expected to be exclusively conducted by the prosumers of the network with negligible influence from the grid. This raises the critical question: how can enough prosumers be encouraged to participate in peer-to-peer trading so as to make its operation sustainable and beneficial to the overall electricity network? To this end, this paper proposes how a motivational psychology framework can be used effectively to design peer-to-peer energy trading to increase user participation. To do so, first, the state-of-the-art of peer-to-peer energy trading literature is discussed by following a systematic classification, and gaps in existing studies are identified. Second, a motivation psychology framework is introduced, which consists of a number of motivational models that a prosumer needs to satisfy before being convinced to participate in energy trading. Third, a game-theoretic peer-to-peer energy trading scheme is developed, its relevant properties are studied, and it is shown that the coalition among different prosumers is a stable coalition. Fourth, through numerical case studies, it is shown that the proposed model can reduce carbon emissions by 18.38% and 9.82% in a single day in Summer and Winter respectively compared to a feed-in-tariff scheme. The proposed scheme is also shown to reduce the cost of energy up to 118 cents and 87 cents per day in Summer and Winter respectively. Finally, how the outcomes of the scheme satisfy all the motivational psychology models is discussed, which subsequently shows its potential to attract users to participate in energy trading.

• The paper presents a novel coalition game approach that integrates motivational psychology to boost prosumer participation.
• It combines multiple motivational models to effectively align economic incentives with sustainable energy practices.
• Numerical case studies demonstrate cost savings up to 118¢ per day and emission reductions as high as 18.38% versus FiT schemes.

A Motivational Game-Theoretic Approach for Peer-to-Peer Energy Trading in the Smart Grid

The paper addresses the emerging field of peer-to-peer (P2P) energy trading within the smart grid, emphasizing the potential role of motivational psychology to enhance prosumer participation. The authors explore how game theory, specifically coalition games, can be strategically applied to design a sustainable P2P energy trading platform that is appealing to prosumers both economically and environmentally.

Literature Review and Identified Gaps

The research begins by surveying existing literature in the domain of P2P energy trading, identifying a crucial gap: the lack of prosumer-centric trading strategies that ensure sustainable engagement in the electricity market. The paper posits that existing models fall short in adequately motivating prosumer participation, which is vital for the successful operation of P2P platforms free from the directives of a centralized authority.

Motivational Psychology Framework

The paper introduces a comprehensive motivational psychology framework aimed at enhancing prosumer participation. It utilizes various motivational models such as the attitude model, rational-economic model, information model, elaboration likelihood model, and positive reinforcement model. Each model provides a lens through which prosumers' willingness to engage in P2P trading can be understood and influenced.

Game-Theoretic Approach

The authors propose a cooperative game-theoretic model to design the P2P trading scheme. The framework is structured around a canonical coalition game, examining the stability of prospective coalitions among prosumers. The solution concept of the core is employed to ensure that the coalition formed via P2P trading is stable, meaning no individual prosumer has an incentive to deviate from its coalition agreement.

Numerical Case Studies

Empirical validation of the proposed model is demonstrated through numerical case studies. The results indicate that the P2P trading scheme can reduce carbon emissions by 18.38% in summer and 9.82% in winter when compared to a feed-in tariff (FiT) scheme. Additionally, the paper reports energy cost reductions of up to 118¢ per day in summer and 87¢ in winter. These findings underscore the economic and environmental benefits of the scheme, aligning with the motivational psychology framework's models to incite participation.

Implications and Future Research Directions

The implications of this paper are twofold. Practically, the approach signifies a promising pathway for enhancing prosumer participation in decentralized energy exchanges, potentially leading to more sustainable energy practices and reduced reliance on centralized power stations. Theoretically, it suggests broader applications of motivational psychology within smart grid management, inviting future research to consider these models when tackling prosumer engagement challenges.

This paper's approach provides a structured method to integrate psychological insights with rigorous game-theoretic modeling, offering a novel strategy for fostering active prosumer participation. Future development in this cross-disciplinary area might encompass expanding the model to include battery storage options, diverse renewable energy types, and consideration of dynamic market conditions, ultimately advancing P2P energy trading towards broader adoption.