Peer-to-peer transaction with voltage management strategy in distribution network considering trading risk

Abstract

P2P trading is driving the decentralization of the electricity market, the autonomy and privacy requirements of prosumers may introduce safety risks such as voltage violations. Existing security management methods based on price guidance may face unsolvable situations in trading scenarios and have difficulty assessing the impact of P2P transactions on voltage security. To this end, this paper proposes a novel distribution system operator (DSO)-prosumers bi-level optimization framework incorporating the dynamic operating envelope (DOE) and risk coefficient-based network usage charge (RC-NUC). In the upper-level, the DOE is employed for dynamic voltage management to prevent violations while the RC-NUC further guides prosumers to engage in grid-friendly transactions. The lower-level decentralized market enables prosumers to optimize trading decisions autonomously. Only price signals and energy quantities are exchanged between the two levels, ensuring the privacy of both parties. Additionally, an alternating direction method of multipliers (ADMM) with adaptive penalty factor is introduced to improve computational efficiency. Case studies on a modified IEEE 33-bus system demonstrate that the proposed method reduces voltage violation risks by 18.31% and enhances trading efficiency by 32.3%. These results highlight the feasibility and effectiveness of the approach in advancing secure and efficient distributed energy transactions.