Decentralized Prosumer-Centric P2P Electricity Market Coordination with Grid Security

Duarte Kazacos Winter, Rahul Khatri and Michael Schmidt
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Duarte Kazacos Winter: Institute of Energy Systems Technology, Offenburg University of Applied Sciences, 77652 Offenburg, Germany
Rahul Khatri: Institute of Energy Systems Technology, Offenburg University of Applied Sciences, 77652 Offenburg, Germany
Michael Schmidt: Institute of Energy Systems Technology, Offenburg University of Applied Sciences, 77652 Offenburg, Germany

Energies, 2021, vol. 14, issue 15, 1-17

Abstract: The increasing number of prosumers and the accompanying greater use of decentralised energy resources (DERs) bring new opportunities and challenges for the traditional electricity systems and the electricity markets. Microgrids, virtual power plants (VPPs), peer-to-peer (P2P) trading and federated power plants (FPPs) propose different schemes for prosumer coordination and have the potential of becoming the new paradigm of electricity market and power system operation. This paper proposes a P2P trading scheme for energy communities that negotiates power flows between participating prosumers with insufficient renewable power supply and prosumers with surplus supply in such a way that the community welfare is maximized while avoiding critical grid conditions. For this purpose, the proposed scheme is based on an Optimal Power Flow (OPF) problem with a Multi-Bilateral Economic Dispatch (MBED) formulation as an objective function. The solution is realized in a fully decentralized manner on the basis of the Relaxed Consensus + Innovations (RCI) algorithm. Network security is ensured by a tariff-based system organized by a network agent that makes use of product differentiation capabilities of the RCI algorithm. It is found that the proposed mechanism accurately finds and prevents hazardous network operations, such as over-voltage in grid buses, while successfully providing economic value to prosumers’ renewable generation within the scope of a P2P, free market.

Keywords: renewable energy; peer-to-peer; electricity market; economic dispatch; consensus + innovations; distributed energy resources (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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