Price-function-free energy pricing in Bilevel peer-to-peer energy markets considering network security

Zhixiang Sun, Zhigang Li, Yixun Xue, Xinyue Chang, Huajian Li and J.H. Zheng

Applied Energy, 2025, vol. 391, issue C, No S030626192500594X

Abstract: Peer-to-peer (P2P) energy sharing is effective at reducing costs for prosumers. Existing pricing methods for P2P energy sharing rely on specific forms of the price function and cannot continuously adjust the price of shared energy; neither time-varying prices of retail energy nor network constraints are considered. To address these issues, this paper formulates a bilevel pricing model for retail and P2P sharing of energy using a Stackelberg game. On this basis, a price-function-free (PFF) pricing method for P2P energy sharing is proposed, which provides continuous price profiles of shared energy according to varying supply and demand in the community. Then, a transaction correction method is proposed to prevent network overloading in the distribution system during decentralized bilateral trading between prosumers. The case studies verify the effectiveness of the proposed transaction correction method. Furthermore, compared with existing pricing methods, the proposed PFF pricing method can increase utility by at least 9 %, as confirmed by a comprehensive multiple-index evaluation.

Keywords: Bilevel market; Energy pricing; Network constraint; Price function; Peer-to-peer trading; Stackelberg game (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.apenergy.2025.125864

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