Peer-to-peer Energy Trading Considering Security Constraints in Distribution Networks

Abstract

With the increasing penetration of distributed energy resources (DERs) in power system, distribution grid or microgrid based peer-to-peer (P2P) energy trading has a promising prospect because it can take full advantage of DERs. In this paper, a novel P2P energy trading scheme in distribution networks is proposed to deal with the economic issues caused by transaction cost and the technical issues caused by network security constraint. In particular, the modified continuous double auction with social welfare maximization is proposed to obtain the un-constrained trading schedule in the presence of transaction cost. Moreover, based on alternating current power flow sensitivity analysis, the un-constrained trading schedule is verified and adjusted in order to maximize the total amount of trading energy. Then the transaction cost is formulated by combining the MW-Mile method and the increase in network loss caused by P2P transaction. Finally, the feasibility and the effectiveness of the proposed P2P energy trading scheme is verified by comprehensive case studies.