Peer-to-peer energy trading under distribution network constraints with preserving independent nature of agents

Abstract

In recent years, the use of distributed energy resources has accelerated to deal with global warming. As these resources are decentralized, the current centralized energy market must be modified to accommodate their characteristics. Advances in information technology have made it possible to implement peer-to-peer (P2P) markets. However, completely removing the distribution system operator from P2P exchanges can risk the network's security. Conversely, establishing network security only by the operator can decline the independence of agents. This paper proposes a decentralized framework for implementing the P2P market based on the alternating direction method of multipliers, which maintains the distribution system's constraints, considering the agents' independent nature. The agents reach convergence with minimal exchange of information while maintaining the network constraints, including voltage and current limits. The network constraints are included using a proposed sensitivity approach in the sub-problem of each agent. In this approach, by calculating the sensitivity coefficients of voltage and current, the network security can be evaluated with the changes of active and reactive powers by agents. The simulation results demonstrate that the proposed framework can efficiently maintain network constraints. The short running time of the P2P trading with the proposed framework makes it feasible for practical applications.