Peer-to-Peer Energy Trading With Active Participation of Distributed Generation

Abstract

Peer-to-peer (P2P) energy trading fosters direct energy exchange between prosumers in a cost-effective manner. However, there are many challenges in implementing the P2P framework on a large scale. The prominent one is maintaining the distribution network operation under prescribed limits. This work proposes a novel P2P energy-sharing framework using a modified Nash bargaining-based cooperative game for all buildings hypothetically aggregated as virtual communities (VCs) based on their location in the distribution network. This framework incorporates the active participation of DGs as well as DSO in the local energy market and has the ability to settle transactions with respect to network constraints using dynamic network usage charges and electricity prices. The hypothetical aggregation or grouping reduces the number of transactions resulting in improved computational efficacy. A shareable battery energy storage system (BESS) is also assumed to be present in each VC. The proposed algorithm is based on cloud computing which is able to derive the equilibrium strategies of all players using a privacy-preserving decentralised approach.