Consensus alternating direction multiplier method based fully distributed peer-to-peer energy transactions considering the network transmission distance

Abstract

The zero-carbon concept for combating climate change boosts the development of distributed renewable energies in distribution grids. However, the lack of appropriate incentives limits their gains. The virtual power plant aggregates distributed energy resources on the demand side for cost-effective renewable energy consumption via flexible transactions. When compared to trading directly with retailers, virtual power plants can improve their efficiency through peer-to-peer energy trading, thus promoting the development of distributed renewable energies in the distribution network. This paper proposes a peer-to-peer energy transaction mechanism between multiple virtual power plants. First, a multi-VPP model based on peer-to-peer energy trading is constructed. It includes modeling of electric vehicles, gas turbines, renewable energy, and flexible loads. Second, because prosumers are owned by different stakeholders, a distributed optimization model is developed. The model is then solved based on a fully decentralized consensus alternating direction multiplier method. In addition to the energy transaction, the benefit distribution of peer-to-peer energy trading is then investigated using the Shapley value method. The simulation results confirm the proposed peer-to-peer energy transactions can not only effectively improve the overall benefits of virtual power plant alliance, but also improves the income of renewable energies. Finally, the conclusion section summarizes the contributions and analyzes the limitations.