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An interactive two-stage retail electricity market for microgrids with peer-to-peer flexibility trading

Author

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  • Huang, Chunyi
  • Zhang, Mingzhi
  • Wang, Chengmin
  • Xie, Ning
  • Yuan, Zhao

Abstract

To accommodate the proliferation of microgrids (MGs) that manage various distributed energy resources (DERs) to ensure secure internal operations, an interactive two-stage retail electricity market based on the transactive energy is proposed to provide an effective platform for these prosumers to participate in distribution-side retail transactions. Firstly, given the unpredictability of uncertainty, the centralized day-ahead stochastic energy trading between the distribution system operator (DSO) and MGs is performed, where the chance-constrained uncertainty distribution locational marginal price (CC-UDLMP) that quantifies the cost of uncertainty precautions is used to settle the transactions. Secondly, in the intra-day stage, to eliminate power imbalances from rolling estimates by exploiting the adjustability capacity of the DERs within the MGs, the peer-to-peer (P2P) based flexibility service sharing is implemented between MGs under the system-level regulation of DSO. Thirdly, a fully distributed iterative algorithm is adopted to find the Nash equilibrium solution of this two-stage sequential game under the market machanism, where the Lp-box alternating direction methods of multipliers algorithm (Lp-box ADMM) is adopted to efficiently resolve the stochastic market clearing with a mixed-integer programming structure to improve the versatility of this work. It is verified that the proposed market mechanism can effectively leverage the flexibility potentials of the MGs and improve the overall market efficiency under uncertain environments.

Suggested Citation

  • Huang, Chunyi & Zhang, Mingzhi & Wang, Chengmin & Xie, Ning & Yuan, Zhao, 2022. "An interactive two-stage retail electricity market for microgrids with peer-to-peer flexibility trading," Applied Energy, Elsevier, vol. 320(C).
    • Handle: RePEc:eee:appene:v:320:y:2022:i:c:s030626192200472x
    DOI: 10.1016/j.apenergy.2022.119085
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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. Ruan, Hebin & Gao, Hongjun & Qiu, Haifeng & Gooi, Hoay Beng & Liu, Junyong, 2023. "Distributed operation optimization of active distribution network with P2P electricity trading in blockchain environment," Applied Energy, Elsevier, vol. 331(C).
    5. Tong, Ziqiang & Mansouri, Seyed Amir & Huang, Shoujun & Rezaee Jordehi, Ahmad & Tostado-Véliz, Marcos, 2023. "The role of smart communities integrated with renewable energy resources, smart homes and electric vehicles in providing ancillary services: A tri-stage optimization mechanism," Applied Energy, Elsevier, vol. 351(C).

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