P2P Energy Trading in Local Energy Market considering Network Fees and Losses

Abstract

Integration of distributed energy resources (DERs) into distribution networks offer various benefits, including lower greenhouse gas (GHG) emissions, loss reduction, and grid reliance reduction. However, as the number of distributed energy resources grow, existing distribution networks face a variety of operational and market concerns, including voltage limit breaches, line congestion, visibility issues with DERs, and intermittent energy balances. It is difficult to construct a centralized market that serves several areas to handle such local concerns due to a variety of barriers. So, this work proposes a Peer-to-Peer (P2P) energy trading platform for participants with the capability of active participation in the market, where they can manage their demand and generation and participate as a buyer or seller considering network losses and network fees. For energy transfer, physical network or grid is considered, hence power losses cannot be ignored and grid-related costs are always present in the Peer-to-Peer trading. Grid-related cost consists of the network utilization fees, that is calculated using an electrical distance approach.