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Electrical-distance driven peer-to-peer energy trading in a low-voltage network

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  • Guerrero, Jaysson
  • Sok, Bunyim
  • Chapman, Archie C.
  • Verbič, Gregor

Abstract

Given the increasing penetration of distributed energy resources (DER) in low-voltage networks, peer-to-peer (P2P) energy trading has been proposed to facilitate DER integration into power systems. In this paper, we investigate P2P energy trading driven by the electrical distance between agents in a low-voltage network. Our market design considers the role of a distributed system operator (DSO) who determines the shortest path between agents, encoded in preference lists. The DSO submits the preference lists to the agents but does not intervene in the P2P matching process. Specifically, we propose two decentralised P2P market mechanisms that are induced by the relations in the preference lists. First, we introduce a stable-matching (SM) algorithm for matching agents and guaranteeing that no agents want to mutually deviate from the matching. Second, a mechanism based on a continuous double auction (CDA) is adopted for continually matching peers. The proposed mechanisms are tested on a UK low-voltage network. Simulation results show that the outcome of the proposed SM mechanism faces a trade-off between the stability of the matching and market efficiency, whereas the proposed CDA-based mechanism deviates from the stable outcome but can still capture the high market efficiency of the CDA. We show that a P2P market driven by electrical distance leads to reduced losses and line congestion in both mechanisms.

Suggested Citation

  • Guerrero, Jaysson & Sok, Bunyim & Chapman, Archie C. & Verbič, Gregor, 2021. "Electrical-distance driven peer-to-peer energy trading in a low-voltage network," Applied Energy, Elsevier, vol. 287(C).
    • Handle: RePEc:eee:appene:v:287:y:2021:i:c:s0306261921001380
    DOI: 10.1016/j.apenergy.2021.116598
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    References listed on IDEAS

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    1. Tushar, Wayes & Yuen, Chau & Saha, Tapan K. & Morstyn, Thomas & Chapman, Archie C. & Alam, M. Jan E. & Hanif, Sarmad & Poor, H. Vincent, 2021. "Peer-to-peer energy systems for connected communities: A review of recent advances and emerging challenges," Applied Energy, Elsevier, vol. 282(PA).
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    4. Guerrero, Jaysson & Gebbran, Daniel & Mhanna, Sleiman & Chapman, Archie C. & Verbič, Gregor, 2020. "Towards a transactive energy system for integration of distributed energy resources: Home energy management, distributed optimal power flow, and peer-to-peer energy trading," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    5. Chen, Kaixuan & Lin, Jin & Song, Yonghua, 2019. "Trading strategy optimization for a prosumer in continuous double auction-based peer-to-peer market: A prediction-integration model," Applied Energy, Elsevier, vol. 242(C), pages 1121-1133.
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    2. Dukovska, Irena & Slootweg, J.G. (Han) & Paterakis, Nikolaos G., 2023. "Introducing user preferences for peer-to-peer electricity trading through stochastic multi-objective optimization," Applied Energy, Elsevier, vol. 338(C).
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    4. Aguado, José A. & Paredes, Ángel, 2023. "Coordinated and decentralized trading of flexibility products in Inter-DSO Local Electricity Markets via ADMM," Applied Energy, Elsevier, vol. 337(C).
    5. Botelho, D.F. & de Oliveira, L.W. & Dias, B.H. & Soares, T.A. & Moraes, C.A., 2022. "Integrated prosumers–DSO approach applied in peer-to-peer energy and reserve tradings considering network constraints," Applied Energy, Elsevier, vol. 317(C).
    6. Bidan Zhang & Yang Du & Xiaoyang Chen & Eng Gee Lim & Lin Jiang & Ke Yan, 2022. "Potential Benefits for Residential Building with Photovoltaic Battery System Participation in Peer-to-Peer Energy Trading," Energies, MDPI, vol. 15(11), pages 1-21, May.
    7. Younes Zahraoui & Tarmo Korõtko & Argo Rosin & Hannes Agabus, 2023. "Market Mechanisms and Trading in Microgrid Local Electricity Markets: A Comprehensive Review," Energies, MDPI, vol. 16(5), pages 1-52, February.
    8. Liu, Wei & Chau, K.T. & Tian, Xiaoyang & Wang, Hui & Hua, Zhichao, 2023. "Smart wireless power transfer — opportunities and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 180(C).
    9. Arnob Das & Susmita Datta Peu & Md. Abdul Mannan Akanda & Abu Reza Md. Towfiqul Islam, 2023. "Peer-to-Peer Energy Trading Pricing Mechanisms: Towards a Comprehensive Analysis of Energy and Network Service Pricing (NSP) Mechanisms to Get Sustainable Enviro-Economical Energy Sector," Energies, MDPI, vol. 16(5), pages 1-27, February.
    10. 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).
    11. Mehdinejad, Mehdi & Shayanfar, Heidarali & Mohammadi-Ivatloo, Behnam, 2022. "Peer-to-peer decentralized energy trading framework for retailers and prosumers," Applied Energy, Elsevier, vol. 308(C).
    12. Yasuhiro Takeda & Yoichi Nakai & Tadatoshi Senoo & Kenji Tanaka, 2021. "Designing a User-Centric P2P Energy Trading Platform: A Case Study—Higashi-Fuji Demonstration," Energies, MDPI, vol. 14(21), pages 1-14, November.
    13. Tsaousoglou, Georgios & Giraldo, Juan S. & Paterakis, Nikolaos G., 2022. "Market Mechanisms for Local Electricity Markets: A review of models, solution concepts and algorithmic techniques," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    14. Shama Naz Islam & Aiswarya Sivadas, 2022. "Optimisation of Buyer and Seller Preferences for Peer-to-Peer Energy Trading in a Microgrid," Energies, MDPI, vol. 15(12), pages 1-29, June.

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