A Peer-to-Peer Electricity Marketplace for Simultaneous Congestion Management and Power Loss Reduction

Abstract

With the proliferation of Distributed Energy Resources (DERs) deployment, “prosumer” as a new agent is formed in lower levels of the energy network, which is capable of producing, consuming, and storing energy. Peer-to-Peer (P2P) electricity markets make new opportunities for such agents to trade energy with other participants in the power grid. An efficient design of P2P market mechanisms and related computational issues has gained considerable attention in recent years. However, despite the importance of the grid operation and technical constraints under P2P markets, they have attracted less attention. In this paper, we propose a method for P2P markets to improve the technical parameters of the power grid. The proposed method employs penalty functions as incentives for peers to participate in power loss reduction and congestion management. The proposed approach is tested on an 11-bus radial distribution network. The simulation results show a considerable reduction in power losses along with congestion elimination.