DSO-prosumers dual-layer game optimization based on risk price guidance in a P2P energy market environment

Lei Dong, Shiming Zhang, Tao Zhang, Zibo Wang, Ji Qiao and Tianjiao Pu

Applied Energy, 2024, vol. 361, issue C, No S0306261924002769

Abstract: With the development of prosumers, peer-to-peer (P2P) energy transactions have become possible and emerged as a research focus. However, global information cannot be obtained in the P2P energy market, which results in the inability to consider network physical constraints during the trading process. As a result, the operational risks may exist in the system due to the opportunistic behaviors. To this end, this paper proposes a dual-layer game optimization method between the distributed system operator (DSO) and prosumers involving the risk price guidance mechanism in the P2P energy market. Specifically, the upper and lower layers meet the privacy requirements of each participant through limited information sharing. Then, the concept of risk price is introduced to guide prosumers' P2P energy transactions. The upper and lower layers continuously adjust their strategies, and the risk of congestion is mitigated when the game achieves equilibrium. This ensures a balanced consideration of system security and the economic interests of all participants. Additionally, a C-ADMM method with adaptive penalty factor is introduced for solving the equilibrium of the distributed P2P energy market, promoting supply-demand balance and enhancing energy efficiency while protecting privacy. Moreover, the solution efficiency is improved compared to standard ADMM methods. Case studies on an modified IEEE 33-node system validate the effectiveness of the proposed model and method.

Keywords: Distributed P2P energy transactions; Incomplete information; Risk price; Dual-layer game; C-ADMM (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.apenergy.2024.122893

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