Cost Sharing Mechanism for Reactive Power Management Amidst P2P Energy Sharing

Abstract

With the increasing penetration of distributed energy resources (DERs) at the demand side, power quality in the distribution network has become a critical problem. Currently, the operator/utility would pay for the cost increment caused by out-of-order DERs. In this paper, a P2P energy sharing (ES) model and a cost sharing mechanism are proposed to reduce the total cost and encourage DERs to maintain power quality. In the proposed model, end-users with DERs can flexibly share surplus energies with others instructed by the aggregator. A linear model is applied to analyze the active and reactive power flow in the distribution network and ensure the sharing outcomes meet the operational requirements. To encourage participation, the total cost saving is shared based on the identified contribution. Case studies on the coalition composed of 10 end-users based on the real-world data validate the effectiveness of the proposed model and mechanism.