Exploiting the Benefits of P2P Energy Exchanges in Resilience Enhancement of Distribution Networks

TL;DR

This paper investigates how peer-to-peer energy markets, using double auction mechanisms and specific pricing strategies, can enhance the resilience of distribution networks during outages, benefiting prosumers and consumers.

Contribution

It introduces a P2P energy exchange framework with DLMP and average pricing mechanisms to improve system resilience and market efficiency during outages.

Findings

DLMP prices rise during emergencies, signaling network stress.

Prosumers gain from higher transaction prices in P2P markets.

Consumers maintain uninterrupted power supply during outages.

Abstract

As the adoption of distributed energy resources grows, power systems are becoming increasingly complex and vulnerable to disruptions, such as natural disasters and cyber-physical threats. Peer-to-peer (P2P) energy markets offer a practical solution to enhance reliability and resilience during power outages while providing monetary and technical benefits to prosumers and consumers. This paper explores the advantages of P2P energy exchanges in active distribution networks using a double auction mechanism, focusing on improving system resilience during outages. Two pricing mechanisms distribution locational marginal price (DLMP) and average price mechanism are used to complement each other in facilitating efficient energy exchange. DLMP serves as a price signal that reflects network conditions and acts as an upper bound for bidding in the P2P market. Meanwhile, prosumers and consumers submit bids in the market and agree on energy transactions based on average transaction prices, ensuring fast matching and fair settlements. Simulation results indicate that during emergency operation modes, DLMP prices increase, leading to higher average transaction prices. Prosumers benefit from increased market clearing prices, while consumers experience uninterrupted electricity supply.