Dual-layer peer-to-peer energy trading method with multiple SOPs pricing in distribution networks

Abstract

With the decentralization and the development of power markets, different stakeholders are emerged in distribution networks. The unbalance of distributed generators (DGs) and demand-side response in each area leads to a power transfer demand with others. Peer-to-peer (P2P) energy trading has the potential to enable different stakeholders to complement each other. Soft open points (SOPs) provide a promising physical platform for power transfer and trading. However, determining the trading price with SOP participation is an urgent issue to be addressed. Aiming at improving fair and economic operation, this study proposes a P2P energy trading method with multiple SOPs pricing in distribution networks. First, a dual-layer P2P energy trading framework is established. In the upper layer, an optimal pricing model is formulated to maximize SOP profits. An optimal dispatch model is formulated in the lower layer to conduct the power transfer based on the upper layer price. Then, the dual-layer model is converted into a second-order cone programming (SOCP) model to achieve computational tractability. Finally, a practical distribution network is utilized to validate the proposed method. The results indicate that the proposed P2P energy method is effective in reducing the operating costs and increasing the operating profits of SOPs.