Distributed energy IoT-based real-time virtual energy prosumer business model for distributed power resource

Abstract

Smart energy technologies, services, and business models are being developed to reduce energy consumption and emissions of CO2 and greenhouse gases and to build a sustainable environment. Renewable energy is being actively developed throughout the world, and many intelligent service models related to renewable energy are being proposed. One of the representative service models is the energy prosumer. Through energy trading, the demand for renewable energy and distributed power is efficiently managed, and insufficient energy is covered through energy transaction. Moreover, various incentives can be provided, such as reduced electricity bills. However, despite such a smart service, the energy prosumer model is difficult to expand into a practical business model for application in real life. This is because the production price of renewable energy is higher than that of the actual grid, and it is difficult to accurately set the selling price, restricting the formation of the actual market between sellers and consumers. To solve this problem, this paper proposes a small-scale energy transaction model between a seller and a buyer on a peer-to-peer (P2P) basis. This model employs a virtual prosumer management system that utilizes the existing grid and realizes the power system in real time without using an energy storage system (ESS). Thus, the profits of sellers and consumers of energy transactions are maximized with an improved return on investment (ROI), and an intelligent demand management system can be established.