IEEE Consumer Electronics Magazine - November/December 2021 - 102

Special Section on Advances in Smart Cities
Figure 4. P2P energy trading framework for smart
cities.
distributed feedback linearization scheme, the
control signal (ui) for regulating the output
power of each energy source is10
ui ¼
vi aiðxi;riÞ
biðxi;riÞ
where vi ¼Kizi þ cij
Pn
(3)
j¼1j6¼iðyj yjdÞ is a virtual
control input with Ki as the feedback gain,
zi as the transformed state using the feedback
linearization process, cij as the coupling strength
of the energy source, yj as the output of other
sources, and yjd is the desired output other sources;
ai and bi are nonlinear functions of different
properties of energy sources; and ri ¼ siðpi;qiÞ is
the generalized representation of parameters.
The parameters in (3) can be considered as
unknown (ui ri) and estimated through an
adaptation law _ui ¼gifiðxi; uiÞðyi yidÞ with gi
as the adaptation gain. Therefore, the control
input in (3) will regulate the output power of
each energy source to ensure the desired power
sharing without affecting other sources in a
smart city. This controller also assists the P2P
energy trading framework to perform the actual
trading activities and calculate incentives for
sellers and buyers as discussed in the following
section.
P2P ENERGY TRADING FRAMEWORK
The P2P energy trading framework is developed
based on the energy shortage and excess
information, from the SGC center, for different
services in smart cities. Based on these
102
information, all these services can be classified
as either buyers or sellers as mentioned earlier
and shown in Figure 4, where the complete
energy trading framework embedded with the
SEH is shown. From this figure, it can be seen
that there are four steps for energy trading: i)
energy information from the SGC, ii) bidding, iii)
priority ranking, and iv) energy sharing and trading.
At the beginning of this scheme, the SEH
defines buyers and sellers as well as the SEH
started acting on behalf of them for selling or
buying energy through the participation in the
bidding process. The bidding process can be formulated
as a leader-follower game11 or a doublesided
auction.12 Furthermore, the combination
of both leader-follower game and double-sided
auction can be used together and the proposed
trading framework is developed by combining
these two approaches for utilizing their benefits.
The energy transactions (sell or buy) in the
local market will be decided by the SEH, where
sellers will only share their energy excess information
and buyers will bid within a predefined
price range. The bidding mechanism will ensure
the market clearing price and the set point for
the controller will be determined accordingly.
Here, the distributed controller is used to minimize
dynamic interactions among different
energy sources and such interactions can be
clearly evidenced from Figure 3. In this framework,
sellers are considered as leader by providing
them more power for selecting buyers to sell
their excess energy. The proposed P2P trading
framework works based on predefined range,
rFiT 


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