Peer-to-Peer Based Energy Management Framework for Enhancing Rural Electrification Level

Abstract

Rural electrification is a crucial component of the power system that requires urgent innovation and transformation to enhance electrification levels. However, various challenges hinder the progress in rural electrification, primarily due to remote locations and unique consumption patterns. To effectively coordinate the local energy distribution, an energy management framework utilizing peer-to-peer (P2P) based interactive operations is proposed, which minimizes the reliance on long-distance transmission while enhancing the rural electrification level. The proposed P2P-based energy management framework incorporates various distributed generation resources across rural areas, facilitating direct energy transactions between neighboring community-based villages. Additionally, the P2P energy trading is modeled as a Nash bargaining (NB) problem, which accounts for the allocation of network loss costs and operational state of the rural distribution network. To protect the privacy of individual villages, an improved adaptive alternating direction method of multipliers (AADMM) is proposed to solve the NB problem. The AADMM utilizes a local curvature approximation scheme during parameter updates, allowing for automatic adjustments of the fixed penalty parameter within the standard alternating direction method of multipliers (ADMM). This enhancement improves the convergence rates without requiring central oversight. Simulation results demonstrate significant reductions in operational costs for both the overall network and individual village participants. The proposed P2P-based energy management framework also enhances the bus voltage stability and reduces the line transmission power, thereby further enhancing rural electrification levels. The adaptability and extensibility of this framework are further validated using the IEEE 33-bus and 118-bus distribution systems. Additionally, the AAD-MM shows higher convergence rates compared with the standardADMM.