Domestic P2P energy market design considering network reconfiguration and usage fees: Bi-level nonlinear programming and exact clearing algorithm

The wide utilization of network reconfiguration brings new challenges to domestic peer-to-peer (P2P) energy market. Specifically, flexible and changeable system topology has a profound impact on electricity distance-based network charges which increases the difficulty in market participants' decision-making. To address this issue, the authors propose a hierarchical P2P energy market framework which integrates network reconfiguration and virtual P2P power flow-based network usage fee (NUF) mechanism. Then, this framework is modelled as a bi-level nonlinear programming which reflects the complex interation between system topology, network charges and stakeholders' strategies. In the upper-level, distribution system operator (DSO) aims to maximize its economic benefits and ensure network security through network reconfiguration. In the lower-level, prosumers form a cooperative coalition to obtain their own optimal strategies (i.e., join in P2P trading or transact with DSO) under network charge mechanism. Furthermore, a model formulation method and a sample-based algorithm are presented to clear the domestic P2P energy market and ensure the convergence. Numerical results demonstrate that the proposed market achieves a win-win situation for both prosumers and DSO. Meanwhile, the proposed reformulation method and solution algorithm not only guarantee the global optimality under finite iterations, but also possess high computational efficiency.