New coordination framework for smart home peer-to-peer trading to reduce impact on distribution transformer

Abstract

The emergence of distributed energy resources (DERs) is expected to result in an increase in the amount of power transmitted through the distribution power grid. If these DERs are not managed properly, the increased power transmission can cause faster degradation of distribution grid assets (pole-top transformers). To prevent this, measures can be taken to manage the DERs connected to a specific pole-top transformer. This paper presents a new coordination framework for home energy management system (HEMS)-integrated peer-to-peer (P2P) trading, with a focus on the impact of such trading on a Distribution Transformer. The proposed framework provides a comprehensive solution to manage the distribution of power within a smart grid environment by enabling HEMS to engage in P2P trading. This paper also examines optimal energy management in a smart neighborhood to minimize the total cost of energy usage. In addition, to prevent power peaks — that could create excessive power transmission and damage the distribution transformer, a cap within the flexibility bound of the household is placed on the total power households can draw/penetrate from/to the power grid. By optimizing P2P energy trading while considering the limitations of the distribution transformer, this approach enables a more efficient, reliable, and sustainable energy system.