IoT-Enabled Hierarchical Energy Trading for Multicommunity Sharing in Internet of Energy

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Abstract
With the rapid advancement of Internet of Energy (IoE), peer-to-peer (P2P) energy trading has become an important mechanism for decentralized energy balancing and distribution-network relief. However, prior works have focused mainly on single platforms or isolated communities, offering limited insight into coordinated operation across multiple communities within a unified IoE ecosystem. This work proposes an Internet of Things (IoT)-enabled hierarchical trading framework that manages both intra- and inter-community energy transactions through decentralized area platforms and a central coordinating platform. A mixed-integer programming (MIP) model is formulated to maximize the daily profit of energy-trading operators by optimizing household charging and discharging decisions, supported by distributed renewable generation and battery storage. The framework incorporates a dynamic IoT-driven pricing mechanism that adapts buying and selling prices using real-time measurements from smart meters and local IoE communication networks, ensuring responsive and data-driven market operation under varying conditions. Because the optimization problem is NP-complete, a simplified harmony search (SHS) algorithm is adopted to efficiently generate high-quality solutions. Experiments across 20 system configurations show that SHS outperforms several widely used metaheuristic baselines in both solution quality and run-to-run stability. Results further indicate that larger communities yield higher profits, with the maximum observed when each community contains 25 households. Eliminating the central trading platform causes a drastic reduction in operator profit, confirming its essential role in enabling scalable coordination and equitable energy allocation across heterogeneous communities. These findings highlight the effectiveness of the proposed hierarchical IoE architecture and underscore the importance of centralized coordination in next-generation smart energy systems.
Funding Information
  • National Science and Technology Council (NSTC 112-2221-E-A49-116-MY3)
  • National Science and Technology Council (NSTC 114-2221-E-A49-173-MY3)

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