Peer-to-peer trading-based efficient flexibility securing mechanism to support distribution system stability

Sung-Won Park, Zhong Zhang, Furong Li and Sung-Yong Son

Applied Energy, 2021, vol. 285, issue C, No S0306261920317736

Abstract: With the expected increase in the energy transaction of prosumers, there are increasing issues related to maintaining and improving the stability of a distribution system. The flexibility of a prosumer can be effectively used to improve the stability at much reduced cost. Most of the existing studies have separately approached energy and flexibility transactions causing inefficiency. This paper proposes a new peer-to-peer (P2P) transaction mechanism that enables both flexibility and energy transactions to be considered and balanced. In this mechanism, a P2P community has an obligation to reserve the flexibility during P2P energy transaction to ensure an intact distribution system. The prosumers can trade the flexibility among each other to avoid a penalty by securing the required amount of flexibility given by the distribution system operator. A dynamic flexibility index is proposed to quantify to represent the degree of flexibility that can be provided by a prosumer. A Stackelberg game approach using the dynamic flexibility index is modeled to solve the bidding process. The proposed mechanism is described and analyzed through a case study for prosumers with battery energy storage and photovoltaic systems. As a result of case studies, in the proposed mechanism, prosumers can maximize profits through the optimal use of energy resources and simultaneously maintain the stability of distribution systems.

Keywords: P2P transaction mechanism; Flexibility transaction; Dynamic flexibility index; Game theory (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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DOI: 10.1016/j.apenergy.2020.116403

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