Determining the pricing and deployment strategy for virtual power plants of peer-to-peer prosumers: A game-theoretic approach.

• We consider the three-layer communication architecture of P2P-based virtual power plants (P2PVPPs) for P2P energy trading in market. • A novel two-stage game model is proposed to explore the optimal pricing strategy of P2PVPPs to charge for energy sharing services with the prosumers, where the preferences of prosumers on selection of P2PVPPs are characterized using a Hotelling model. • Pricing and deployment strategies of P2PVPPs are analyzed by investigating the dynamics of profit and corresponding optimal prices through sensitivity analysis. • Two-part tariffs has more significant effect than subscription fees for P2PVPP development. Aiming to deal with the fundamental transition of power networks and efficiently achieve sustainable development in the energy sector, virtual power plants for peer-to-peer (P2P) energy transactions among prosumers have been encouraged around the world. Successful implementation of P2P-based virtual power plants (P2PVPPs) requires a pricing and deployment strategy to charge for energy sharing services with the prosumers. In this study, we propose a two-stage game model to guide the pricing and deployment strategy for P2PVPPs to charge for sharing services with the prosumers, where the preferences of prosumers on the selection of their P2PVPPs are characterized using a Hotelling model. Moreover, we provide a numerical example to determine the optimal pricing and deployment strategy for the P2PVPPs, and a sensitivity analysis is conducted to demonstrate how relevant influential factors, which are presented in the model, can affect the P2PVPP operators' profit and corresponding optimal prices, i.e., subscription fees, for prosumers, which includes buyers and sellers. The results indicate that the two-part tariffs have a more significant effect than subscription fees for P2PVPPs' development and appropriately raising the per-transaction charge for prosumers in the two-part tariffs can help improve the effect of two-part tariffs to more effectively promote the development of P2PVPPs. While high per-agent serving costs for prosumers, including both buyers and sellers, and the generation-demand difference (GDD) level of sellers are not conducive to the development of P2PVPP, increasing the per-transaction charge for prosumers, promoting technological progress and improving the degree of product differentiation can help P2PVPP implementation. [ABSTRACT FROM AUTHOR]