An interactive two-stage retail electricity market for microgrids with peer-to-peer flexibility trading

Chunyi Huang, Mingzhi Zhang, Chengmin Wang, Ning Xie and Zhao Yuan

Applied Energy, 2022, vol. 320, issue C, No S030626192200472X

Abstract: To accommodate the proliferation of microgrids (MGs) that manage various distributed energy resources (DERs) to ensure secure internal operations, an interactive two-stage retail electricity market based on the transactive energy is proposed to provide an effective platform for these prosumers to participate in distribution-side retail transactions. Firstly, given the unpredictability of uncertainty, the centralized day-ahead stochastic energy trading between the distribution system operator (DSO) and MGs is performed, where the chance-constrained uncertainty distribution locational marginal price (CC-UDLMP) that quantifies the cost of uncertainty precautions is used to settle the transactions. Secondly, in the intra-day stage, to eliminate power imbalances from rolling estimates by exploiting the adjustability capacity of the DERs within the MGs, the peer-to-peer (P2P) based flexibility service sharing is implemented between MGs under the system-level regulation of DSO. Thirdly, a fully distributed iterative algorithm is adopted to find the Nash equilibrium solution of this two-stage sequential game under the market machanism, where the Lp-box alternating direction methods of multipliers algorithm (Lp-box ADMM) is adopted to efficiently resolve the stochastic market clearing with a mixed-integer programming structure to improve the versatility of this work. It is verified that the proposed market mechanism can effectively leverage the flexibility potentials of the MGs and improve the overall market efficiency under uncertain environments.

Keywords: Distribution locational marginal price; Distribution system operator; Flexibility trading; Microgrids; Peer-to-peer (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030626192200472X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:320:y:2022:i:c:s030626192200472x

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2022.119085

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().