A Novel Strategy for Optimising Decentralised Energy Exchange for Prosumers

The realization of the Smart Grid vision will change the way of producing and distributing
electrical energy. It paves the road for end-users to become pro-active in the distribution system
and, equipped with renewable energy generators such as a photovoltaic panel, to become a so called “prosumer”. The prosumer is engaged in both energy production and consumption. Prosumers’ energy can be transmitted and exchanged as a commodity between end-users, disrupting the traditional utility model. The appeal of such scenario lies in the engagement of the end user, in facilitating the introduction and optimization of renewables, and in engaging the end-user in its energy management. To facilitate the transition to a prosumers’ governed grid, we propose a novel strategy for optimizing decentralized energy exchange in digitalized power grids, i.e., the Smart Grid. The strategy considers prosumer’s involvement, energy loss of delivery, network topology, and physical constraints of distribution networks. To evaluate the solution, we build a simulation program and design three meaningful evaluation cases according to different energy flow patterns. The simulation results indicate that, compared to traditional power distribution system, the maximum reduction of energy loss, energy costs, energy provided by the electric utility based using the proposed strategy can reach 51%, 66%, 97.5%, depending on the strategy. Moreover, the proportion of energy self-satisfaction approaches reaches 98%.