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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. 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).
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    13. 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.
    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.
    15. 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).
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