A review of bidding strategies and energy trading models in peer-to-peer energy trading

Abstract

Peer-to-peer energy trading is an emerging paradigm that allows decentralized trading of energy among consumers, prosumers and other stakeholders in the energy system. This approach enables the integration of distributed energy resources and promotes energy efficiency, sustainability and consumer empowerment. This paper provides a comprehensive review of bidding strategies and energy trading models for P2P energy trading systems. Bidding strategies such as truthful bidding, strategic bidding, double-sided auctions and automated bidding are discussed, highlighting their advantages, challenges and implications for market efficiency and fairness. Additionally, various energy trading models are explored, including bilateral trading, community-based trading, block chain-based trading, centralized trading platforms and virtual power plants. The review examines the key features such as advantages and limitations of each trading model, considering factors such as the scale of the energy system, regulatory environment and the desired level of decentralization and consumer participation. The paper also highlights ongoing research efforts in developing efficient and fair bidding strategies, exploring new trading models and addressing challenges related to market design, cyber security and regulatory frameworks in P2P energy trading systems.