Semester

Spring

Date of Graduation

2026

Document Type

Thesis

Degree Type

MS

College

Statler College of Engineering and Mineral Resources

Department

Industrial and Managements Systems Engineering

Committee Chair

Liu Zeyu

Committee Member

Imtiaz Ahmed

Committee Member

Avishek Choudhury

Abstract

Distributed power generation based on rooftop photovoltaic (PV) systems integrated with battery storage emerges as a promising pathway for reducing greenhouse gas emissions and im- proving flexibility in modern power systems. This study develops a bi-level optimization model to examine how prosumers maximize profit through peer-to-peer (P2P) energy trading with consumers and the grid, and how consumers minimize cost by leveraging P2P trading. The bi-level problem is reformulated as a single-level mixed-integer programming (MIP) model using Karush- Kuhn-Tucker (KKT) conditions to improve tractability and preserve market-clearing behavior. For the model validation and case study development, prosumer and consumer data are collected from the National Renewable Energy Laboratory (NREL) and the Energy Information Administration (EIA). In the validation study, 50 prosumers and 60 consumers are considered, and the results show that prosumers earn an average daily profit of $170 over a 24-hour period. Kanawha County in West Virginia is selected for the case study because of its relatively high concentration of prosumers. In the case study, 600 prosumers and 800 consumers are analyzed, and the results show that individual prosumers earn an average daily profit of $178.63. A computational analysis is also conducted using different prosumer-to-consumer ratios to examine how market composition affects prosumer profit. The results indicate that higher prosumer participation increases profit by about 58% compared with more consumer-dominant settings. Sensitivity analyses further show that increasing demand reduces prosumer profit and electricity sales, while reducing demand improves outcomes. Similarly, increasing PV availability raises prosumer profit, whereas lower PV availability reduces profitability. Seasonal analyses show that prosumers earn higher profits in summer and fall, approximately 40% more than in winter and spring. Overall, the study demonstrates that the proposed P2P framework for distributed power generation and trading is both economically and operationally viable, as it reduces excessive reliance on the grid, supports grid stability, provides consumers with flexibility in choosing energy sources, and enables prosumers to benefit from decentralized energy trading.

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