Welfare Optimization in Energy Communities with P2P Markets

Optimización de bienestar en comunidades energéticas con mercados P2P

Authors

Keywords:

Energy Community, Energy Management System, Peer-to-Peer Market, Resource optimization

Abstract

We address the requirement for Energy Communities (ECs) to integrate efficient Energy Management Systems (EMSs) that optimize resource operation and maximize the benefits for participants. In this work, we implement an EMS that considers the supply and demand profiles of agents, fostering their engagement and ensuring their continued involvement within the community. We establish a mathematical model of an EC composed of prosumers with different types of distributed energy resources and pure consumers. The EMS integrates game theory and optimization techniques to coordinate and schedule energy transactions using welfare functions. Through the developed algorithm, the maximization of community welfare is ensured. This method is compared with the traditional Interior-Point Method (IPM). The results indicate a normalized error average of 0.23%. We simulate a community with six agents and analyze two case studies. The results show that the EMS promotes agent participation by optimizing their resources and achieving more competitive buy and sell prices compared to the main grid. Furthermore, the EMS prioritizes energy dispatch within the EC over transactions with the main grid and accounts for generation costs. The implementation of the EMS improves community welfare, thus contributing to the sustainability of the EC.

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Author Biographies

Sofía Chacón, Universidad de Nariño

Sofia Chacón is a physical and electronic engineer from the Universidad Nacional de Colombia, Manizales. She is currently pursuing a master's degree in Electronic Engineering from the Universidad de Nariño (Colombia). Additionally, she is certified in artificial intelligence. She works as a research assistant on project BPIN 2021000100499 focused on energy transactions for multiple agents. Her main research interests include energy management systems, optimization in power systems, game theory applications, distributed energy management, and peer-to-peer energy markets.

Katerine Guerrero, Fundación Centro de Investigación y Desarrollo Tecnológico en Ciencias Aplicadas - CIDTCA

Katerine Guerrero received the B.S. degree in electronics from Universidad de Nariño (Colombia), in 2007; the M.S. degree in electronics engineering from Pontificia Universidad Javerica - Cali (Colombia), in 2012; and the Ph.D. degree in engineering from Universidad del Valle (Colombia), in 2021. She has experience as professor of Universidad de Nariño and Universidad Mariana (Colombia), and as formulator, principal investigator and research coordinator of R&D projects funded by Minciencias and SGR (Colombia). Currently, Guerrero is the research coordinator of project BPIN 2021000100499, Universidad de Nariño, and the principal investigator of the project 100088 (posdoctoral fellowship at CIDTCA). Her research areas includes complex systems and energy management systems.

Germán Obando, Universidad de Narino

German Obando received the B.S. degree in electronics from Universidad de Nariño (Colombia), in 2008; the M.S. degree in electronics engineering from Universidad de los Andes (Colombia), in 2010; and the Ph.D. degree in engineering from Universidad de los Andes and Ecole des Mines de Nantes (France), in 2016. He joined the Department of Electronics of Universidad de Nariño in 2023, where he is currently an Associate Professor. His research interests include population dynamics, particularly the application of game theory to model engineering problems; distributed control, with a focus on consensus algorithms; and time-delayed systems.

Andrés Pantoja, Departamento de Electronica ´Universidad de Narino

Andrés Pantoja received the B.S. degree in electronics engineering from the Universidad Nacional - Manizales (Colombia), in 1999, and the M.S. and Ph.D. degrees in electronics engineering from the Universidad de los Andes (Colombia), in 2008 and 2012 respectively. In 2003, he joined the Department of Electronics of Universidad de Nariño (Colombia), where he is currently an Associate Professor and researcher with the GIIEE group. His areas of interest include distributed optimization, control systems, and optimization in microgrids.

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Published

2025-06-26

How to Cite

Chacón, S., Guerrero, K., Obando, G. ., & Pantoja, A. . (2025). Welfare Optimization in Energy Communities with P2P Markets: Optimización de bienestar en comunidades energéticas con mercados P2P. IEEE Latin America Transactions, 23(8), 687–695. Retrieved from https://latamt.ieeer9.org/index.php/transactions/article/view/9626

Issue

Vol. 23 No. 8 (2025): Special Issue on Technology Megatrends

Section

Electric Energy