Activating demand side flexibility market in a fully decentralized P2P transactive energy trading framework using ADMM algorithm

Abstract

The communication network development and rising penetration of prosumers in distribution networks pave the way to emerge a fully decentralized energy transactions framework. Prosumers can share their excess energy production in a new market called the peer-to-peer (P2P) market. This paper proposes a decentralized P2P energy trading market that facilitates electrical energy trading between customers. In this new market, customers act as individual players and decide on their own willingness to maximize their social welfare by selling the extra energy production in the P2P market. Other participants can compensate for their energy deficiency in the P2P market at lower prices. In the decentralized framework, the participant's privacy is protected by sharing a limited amount of data between peers. The P2P market paved the way for another technology named the DSF market. The DSF market is activated by the distribution system operator (DSO) in the local P2P market framework. When congestion is detected in the following day, the DSO requests flexibility from the demand-side flexibility (DSF) and publishes a flexibility requirement table (FRT). Such market structure can incentivize customers to participate in DSF programs and help the main grid by mitigating congestion. This paper employed the alternating direction method of multipliers (ADMM) algorithm for solving the decentralized market. Numerical studies are carried out for several peers in a local community. Simulation results demonstrate that the customers participating in the P2P market supply 15.9% of their demand within the P2P market. Additionally, the findings indicate that customers exhibit a willingness to engage in the DSF program. Moreover, it is observed that 99% of the demand changes requested from the DSO in the FRT are adhered to by the peers.