A Peer-to-Peer Energy Trading Framework in Distribution Systems Considering Network Constraints

TL;DR

This paper presents a novel P2P energy trading framework that incorporates network constraints and introduces a Block Double Auction mechanism, validated on a standard distribution test system, to ensure reliable decentralized energy exchanges.

Contribution

It develops an analytical approach to manage network constraints in P2P energy trading and proposes a new market mechanism using Block Double Auction for transaction acceptance.

Findings

Effective management of voltage and congestion constraints

Successful validation on IEEE 33-node distribution system

Robust P2P trading mechanism demonstrated

Abstract

With the widespread adoption of Renewable Energy Sources (RESs) in low-voltage distribution systems, opportunities for energy trading among peers have emerged. In particular, the advent of distributed ledgers and blockchain technologies has catalyzed the application of Peer-to-Peer (P2P) economic concepts in decentralized, small-scale energy trading. This paper focuses on the critical physical layer aspects of transactions within the context of P2P energy trading, with a specific emphasis on addressing network constraints. Key challenges include maintaining margins for over/under voltage, voltage balance, and preventing congestion, all of which must be upheld during P2P energy exchanges. To address these challenges, we propose a novel analytical approach tailored to distribution networks. Furthermore, we introduce the Block Double Auction (BDA) mechanism as the P2P market mechanism for determining the acceptance or rejection of P2P transactions. The effectiveness of our proposed method is validated using the IEEE 33-node distribution test system, demonstrating its robust capabilities.