# A P2P-dominant Distribution System Architecture

## TL;DR

This paper introduces a novel P2P energy trading architecture that integrates peer-to-peer interactions with distribution network management, addressing economic and operational challenges in modern electricity systems.

## Contribution

It proposes two configurations of P2P energy trading architectures that incorporate network usage charges, enhancing utility and peer interactions without compromising grid stability.

## Key findings

- Both configurations effectively incorporate distribution locational marginal prices.
- The architectures enable peer-to-peer trading while maintaining network constraints.
- The utility can manage and settle peer transactions either centrally or peer-centric.

## Abstract

Peer-to-peer interactions between small-scale energy resources exploit distribution network infrastructure as an electricity carrier, but remain financially unaccountable to electric power utilities. This status-quo raises multiple challenges. First, peer-to-peer energy trading reduces the portion of electricity supplied to end-customers by utilities and their revenue streams. Second, utilities must ensure that peer-to-peer transactions comply with distribution network limits. This paper proposes a peer-to-peer energy trading architecture, in two configurations, that couples peer-to-peer interactions and distribution network operations. The first configuration assumes that these interactions are settled by the utility in a centralized manner, while the second one is peer-centric and does not involve the utility. Both configurations use distribution locational marginal prices to compute network usage charges that peers must pay to the utility for using the distribution network.