Abstract
This paper proposes an adaptive segmentation method as a market clearing mechanism for peer-to-peer (P2P) energy trading scheme with large number of market players. In the proposed method, market players participate in the market by announcing their bids. In the first step, players are assigned to different segments based on their features, where the balanced k-means clustering method is implemented to form segments. These segments are formed based on the similarity between players, where the amount of energy for trade and its corresponding price are considered as features of players. In the next step, a distributed method is employed to clear the market in each segment without any need to private information of players. The novelty of this paper relies on developing an adaptive algorithm for dividing large number of market players into multiple segments to enhance scalability of the P2P trading by reducing data exchange and communication overheads. The proposed approach can be used along with any distributed method for market clearing. In this paper, two different structures including community-based market and decentralized bilateral trading market are used to demonstrate the efficacy of the proposed method. Simulation results show the beneficial properties of the proposed segmentation method.
Highlights
The rapid increase in the integration of distributed energy resources (DERs) into the power system along with deploying information and communication technologies (ICTs) has changed power system from a hierarchical structure to a deregulated system [1]
In the bilateral trading market, there is no coordinator and all players can negotiate directly to reach agreement on the price and amount of traded energy. These structures are different in the degree of centralization, in both cases market players can negotiate on energy trading, whether directly or through coordinator
This paper proposes an adaptive segmentation method for market clearing to enhance the scalability of P2P markets
Summary
The rapid increase in the integration of distributed energy resources (DERs) into the power system along with deploying information and communication technologies (ICTs) has changed power system from a hierarchical structure to a deregulated system [1]. Several methods have been proposed for designing market clearing and negotiation mechanism in P2P markets These methods include dual decomposition [8], alternating direction method of multipliers (ADMM) [9], distributed consensus-based algorithms [10], and consensus ? This decrease in the number of players can reduce the complexity of algorithm, as well as the computation and communication overheads [11] Given this context, market segmentation can be applied to reduce the number of negotiating players in the P2P market to enhance scalability of these markets. Market players are clustered based on their features, and players in each segment negotiate separately to reach convergence on the price and amount of traded energy. The distributed algorithm for market clearing in each segment is presented, where ADMM method is employed to design the market clearing and negotiation process. The operation of the adaptive segmentation method is tested for different case studies
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