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Peer-to-peer trading-based efficient flexibility securing mechanism to support distribution system stability

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  • Park, Sung-Won
  • Zhang, Zhong
  • Li, Furong
  • Son, Sung-Yong

Abstract

With the expected increase in the energy transaction of prosumers, there are increasing issues related to maintaining and improving the stability of a distribution system. The flexibility of a prosumer can be effectively used to improve the stability at much reduced cost. Most of the existing studies have separately approached energy and flexibility transactions causing inefficiency. This paper proposes a new peer-to-peer (P2P) transaction mechanism that enables both flexibility and energy transactions to be considered and balanced. In this mechanism, a P2P community has an obligation to reserve the flexibility during P2P energy transaction to ensure an intact distribution system. The prosumers can trade the flexibility among each other to avoid a penalty by securing the required amount of flexibility given by the distribution system operator. A dynamic flexibility index is proposed to quantify to represent the degree of flexibility that can be provided by a prosumer. A Stackelberg game approach using the dynamic flexibility index is modeled to solve the bidding process. The proposed mechanism is described and analyzed through a case study for prosumers with battery energy storage and photovoltaic systems. As a result of case studies, in the proposed mechanism, prosumers can maximize profits through the optimal use of energy resources and simultaneously maintain the stability of distribution systems.

Suggested Citation

  • Park, Sung-Won & Zhang, Zhong & Li, Furong & Son, Sung-Yong, 2021. "Peer-to-peer trading-based efficient flexibility securing mechanism to support distribution system stability," Applied Energy, Elsevier, vol. 285(C).
    • Handle: RePEc:eee:appene:v:285:y:2021:i:c:s0306261920317736
    DOI: 10.1016/j.apenergy.2020.116403
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    References listed on IDEAS

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    Cited by:

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    2. Hanny, Lisa & Wagner, Jonathan & Buhl, Hans Ulrich & Heffron, Raphael & Körner, Marc-Fabian & Schöpf, Michael & Weibelzahl, Martin, 2022. "On the progress in flexibility and grid charges in light of the energy transition: The case of Germany," Energy Policy, Elsevier, vol. 165(C).
    3. Azim, M. Imran & Tushar, Wayes & Saha, Tapan K. & Yuen, Chau & Smith, David, 2022. "Peer-to-peer kilowatt and negawatt trading: A review of challenges and recent advances in distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    4. Fernando García-Muñoz & Mariana Jiménez-Martínez & Josh Eichman & Cristina Corchero & Gabriela Benveniste, 2024. "Exploring the Viability of Local Electricity Markets for Managing Congestion in Spanish Distribution Networks," Energies, MDPI, vol. 17(3), pages 1-18, January.
    5. Hussain, Sadam & Azim, M. Imran & Lai, Chunyan & Eicker, Ursula, 2023. "New coordination framework for smart home peer-to-peer trading to reduce impact on distribution transformer," Energy, Elsevier, vol. 284(C).
    6. Park, Sung-Won & Cho, Kyu-Sang & Hoefter, Gregor & Son, Sung-Yong, 2022. "Electric vehicle charging management using location-based incentives for reducing renewable energy curtailment considering the distribution system," Applied Energy, Elsevier, vol. 305(C).
    7. Babagheibi, Mahsa & Jadid, Shahram & Kazemi, Ahad, 2023. "An Incentive-based robust flexibility market for congestion management of an active distribution system to use the free capacity of Microgrids," Applied Energy, Elsevier, vol. 336(C).

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