Abstract

Bi-directional Energy Trading is going to play an essential role in facilitating the increased usage of distributed renewable energy sources. The smooth transition towards these clean sources of energy would require opening up of the energy markets to allow for a two-way electricity trade. The study proposes a dynamic programming based energy trading framework (called Dynamic Battery Charging (DBC) Algorithm) from the end-user perspective. Using the proposed energy transfer model the framework finds out the optimal battery charge state at the consumer end. To further improve the performance of the framework, the original DBC algorithm is clubbed together with a capacity fading based battery cost model. For testing and validation purpose, a case study of three different load profiles (different in scale) in three energy markets is done. The simulation results show the profitability of the proposed strategy in all the tested scenarios.