Peer-to-Peer Energy Trading With Energy Path Conflict Management in Energy Local Area Network

Abstract

The increasing penetration of distributed renewable generations has given rise to a novel energy management mechanism, peer-to-peer (P2P) energy trading. The concept of Energy Internet (EI) is proposed as a new energy system framework to facilitate P2P energy trading where all distributed electrical devices are interconnected via energy routers (ERs). A proper market clearing approach is required to coordinate decentralized decision making in P2P market for demand-supply balance and feasible end-to-end energy delivery. In this paper, a decentralized market clearing mechanism considering energy path conflict management is proposed for P2P energy trading in energy local area network (e-LAN). An adjusted conflict-based search (ACBS) algorithm is proposed to deal with the non-convexity of the social welfare maximization problem where the nonconvex problem is transformed into multiple independent convex problems. Considering the privacy protection of participants, a dual decomposition based approach is proposed to solve these convex problems in a decentralized manner where self rationality of each participant can be satisfied by maximizing its personal welfare. In addition, energy path conflicts caused by decentralized optimization is resolved by imposing penalty fee and observing the rule of energy sharing maximization. Numerical simulations are presented to verify the effectiveness of the proposed market clearing approach.