A fully decentralized prosumer-centric peer-to-peer energy trading of photovoltaic and battery energy for social welfare maximization considering system voltage constraints

Abstract

A novel decentralized peer-to-peer (P2P) energy trading approach is proposed for photovoltaic and battery energy trading considering network voltage constraints between sellers and buyers to maximize social welfare (SW). The prioritized prosumer Node Coloring Based Distributed Alternating Direction Method of Multipliers (NCBD-ADMM) is a fully decentralized approach proposed to select seller and buyer prosumers according to their utility and pricing function to maximize SW and improve prosumers’ privacy in a P2P network. Additionally, it is a communication-efficient approach that reduces the number of communications between prosumers and iterations required to converge. A novel two-stage limit trading strategy is also proposed to maintain system voltage within safe operating ranges and increase the benefits received by prosumers from P2P trading. This approach is tested on an IEEE-14 bus system and compared with five different strategies in four real-world scenarios. The numerical and simulation results demonstrate that the proposed approach can enhance overall social welfare by up to 7.55 % compared to other state-of-the-art methods, without compromising voltage stability. Furthermore, the proposed approach is compared with other existing state-of-the-art approaches across five different performance metrics. All the metrics demonstrate approximately 100 % across all scenarios for the proposed approach, compared to other state-of-the-art approaches.