Evolutionary game for incentivizing social cooperation of prosumers in transactive energy communities

Abstract

Transactive energy communities offer significant potential for the smart grid’s transition to renewable energy. However, they typically rely on fixed trading contracts between prosumers, which limits flexibility and engagement. Extensive research has been conducted on the mechanisms for implementing transactive energy communities, but there is still limited focus on prosumers’ trading behaviours and their social cooperation in peer-to-peer trading. In this work, we are exploring the potential of evolutionary game theory for modelling the evolution of trading behaviours among community prosumers over time aiming to define a blockchain market mechanism that promotes social cooperation-based P2P interactions. The model, inspired by the Hawk-Dove game, incentivizes prosumers’ cooperative behaviours (Doves) and penalizes prosumers with self-centred trading behaviours (Hawks), fostering social cooperation despite the temptation of higher payoffs from defection. In trading, Doves avoid conflicts and are open to cooperation, while Hawks are not. During a market session, if both prosumers choose the Hawk trading strategy, they are penalized with higher trading costs. If one chooses the Hawk and the other Dove, the Hawk gains all the benefits, and the Dove gains nothing. If both choose Dove, they share the benefits equally. We have evaluated the effectiveness of the solution with a blockchain-based energy marketplace considering realistic scenarios using energy data from prosumers. Results suggest that matched pairs of prosumers in P2P energy transactions gradually shift towards altruistic behaviours. Additionally, at the end of the market session, over 92% of the transactions involve altruistic behaviours, therefore, the prosumers are effectively incentivized to change their behaviour. Moreover, it may significantly increase traded energy in market sessions by up to 50% driven by cooperative trading behaviours of prosumers which unlock higher levels of energy flexibility. Finally, it outperforms the market clearing mechanism in transactions energy prices by up to 3%.