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According to the feed-in tariff for encouraging local consumption of photovoltaic (PV) energy, the energy sharing among neighboring PV prosumers in the microgrid could be more economical than the independent operation of prosumers. For microgrids of peer-to-peer PV prosumers, an energy-sharing model with price-based demand response is proposed. First, a dynamical internal pricing model is formulated for the operation of energy-sharing zone, which is defined based on the supply and demand ratio (SDR) of shared PV energy. Moreover, considering the energy consumption flexibility of prosumers, an equivalent cost model is designed in terms of economic cost and users’ willingness. As the internal prices are coupled with SDR in the microgrid, the algorithm and implementation method for solving the model is designed on a distributed iterative way. Finally, through a practical case study, the effectiveness of the method is verified in terms of saving PV prosumers’ costs and improving the sharing of the PV energy. [ABSTRACT FROM PUBLISHER]

This paper proposes a comprehensive solution methodology for the pricing difficulty when Lagrange multipliers are not unique. A linear optimization model is proposed to solve the congestion-related pricing difficulty. The objective function of the model is set to be minimizing the congestion surplus. In addition, an incentive-based allocation approach is incorporated in the solution procedure for cases when no marginal participant exists. The unique pricing solution obtained through our methodology can achieve proper reallocation of the undetermined surplus. Further, we discuss the reference bus independence property of the proposed pricing methodology. Numerical results are provided to fully test the proposed methodology. Other possible solutions are also presented for comparison. [ABSTRACT FROM PUBLISHER]