Optimizing Peer to Peer Energy Trades in Energy Communities Connected to Active Distribution Network Using Dynamic Operation Envelopes
Subject Areas : Power Engineering
Mohammad Sedaghat
1
,
اسمعیل رک رک
2
,
میثم دوستی زاده
3
1 -
2 -
3 -
Keywords: Peer-to-Peer energy trading, dynamic operating envelopes, active distribution network, local electricity market and energy communities .,
Abstract :
In recent years, peer to peer energy trading have become an important component of local and decentralized electricity markets. One of the remarkable challenges in implementing these trades between users is keeping the technical constraints of distribution networks within the permitted limits and utilizing the maximum capacity of prosumers during energy transactions. Usually, power demand at points in the grid that do not have generations varies over time, which makes it very difficult for prosumers to determine their operating range. In this paper, a structure based on dynamic operation envelopes is presented to dynamically calculate network constraints, which, in addition to maintaining the technical constraints of the network within the permitted range, allows the maximum use of the capacity of prosumers to participate in the market. The proposed structure is presented for P2P trades of energy communities consisting of solar and wind generation, fixed and flexible loads, and batteries in an active distribution network. Also, in this structure, dynamic operation envelopes are calculated from the agreement between the energy communities and the distribution system operator. The proposed method has been implemented on standard IEEE 33 bus system with the presence of several energy communities. The optimization of the equations is performed using the alternating direction method of multipliers (ADMM) and is completely decentralized. The simulations in this paper are accomplished using GAMS software version 24.8.1., and the obtained results show that the presented method increases the trades of energy communities and maintains the technical constraints of the network within the safe range.
Y. Liu, L. Wu, and J. Li, "Peer-to-peer (P2P) electricity trading in distribution systems of the future," The Electricity Journal, vol. 32, no. 4, pp. 2-6, 2019, doi: 10.1016/j.tej.2019.03.002.
P. Siano, G. De Marco, A. Rolán, and V. Loia, "A survey and evaluation of the potentials of distributed ledger technology for peer-to-peer transactive energy exchanges in local energy markets," IEEE Systems Journal, vol. 13, no. 3, pp. 3454-3466, 2019, doi: 10.1109/JSYST.2019.2903172.
J. Zhao, T. Zheng, and E. Litvinov, "A unified framework for defining and measuring flexibility in power system," IEEE Transactions on power systems, vol. 31, no. 1, pp. 339-347, 2015, doi: 10.1109/TPWRS.2015.2390038
E. A. Soto, L. B. Bosman, E. Wollega, and W. D. Leon-Salas, "Peer-to-peer energy trading: A review of the literature," Applied Energy, vol. 283, p. 116268, 2021, doi: 10.1016/j.apenergy.2020.116268.
M. Elkazaz, M. Sumner, and D. Thomas, "A hierarchical and decentralized energy management system for peer-to-peer energy trading," Applied Energy, vol. 291, p. 116766, 2021, doi: 10.1016/j.apenergy.2021.116766.
S. Malik, M. Duffy, S. Thakur, B. Hayes, and J. Breslin, "A priority-based approach for peer-to-peer energy trading using cooperative game theory in local energy community," International Journal of Electrical Power & Energy Systems, vol. 137, p. 107865, 2022, doi: 10.1016/j.ijepes.2021.107865.
J. Zhao et al., "Peer-to-peer electricity trading of interconnected flexible distribution networks based on non-cooperative games," International Journal of Electrical Power & Energy Systems, vol. 145, p. 108648, 2023, doi: doi.org/10.1016/j.ijepes.2022.108648.
M. K. AlAshery et al., "A blockchain-enabled multi-settlement quasi-ideal peer-to-peer trading framework," IEEE Transactions on Smart Grid, vol. 12, no. 1, pp. 885-896, 2020, doi: 10.1109/TSG.2020.3022601.
B. Han, Y. Zahraoui, M. Mubin, S. Mekhilef, T. Korõtko, and O. Alshammari, "Distributed optimal storage strategy in the ADMM-based peer-to-peer energy trading considering degradation cost," Journal of Energy Storage, vol. 96, p. 112651, 2024, doi: 10.1016/j.est.2024.112651.
J. Brooks, R. D. Trevizan, P. Barooah, and A. S. Bretas, "Analysis and evaluation of a distributed optimal load coordination algorithm for frequency control," Electric Power Systems Research, vol. 167, pp. 86-93, 2019, doi: 10.1016/j.epsr.2018.10.021.
W. Shi, X. Xie, C.-C. Chu, and R. Gadh, "A distributed optimal energy management strategy for microgrids," in 2014 IEEE International Conference on Smart Grid Communications (SmartGridComm), 2014, pp. 200-205: IEEE, doi: 10.1109/SmartGridComm.2014.7007646.
J. Chen, K. Li, H. Wang, D. Zhao, C. Jiang, and C. Zhang, "Distributed parallel optimal operation for shared energy storage system-multiple park integrated energy system based on ADMM," Energy, p. 134677, 2025, doi: 10.1016/j.energy.2025.134677.
J. Guerrero, A. C. Chapman, and G. Verbič, "Decentralized P2P energy trading under network constraints in a low-voltage network," IEEE Transactions on Smart Grid, vol. 10, no. 5, pp. 5163-5173, 2018, doi: 10.1109/TSG.2018.2878445.
A. Zare, M. Mehdinejad, and M. Abedi, "Designing a decentralized peer-to-peer energy market for an active distribution network considering loss and transaction fee allocation, and fairness," Applied Energy, vol. 358, p. 122527, 2024, doi:
10.1016/j.apenergy.2023.122527. A. Paudel, L. P. M. I. Sampath, J. Yang, and H. B. Gooi, "Peer-to-peer energy trading in smart grid considering power losses and network fees," IEEE Transactions on Smart Grid, vol. 11, no. 6, pp. 4727-4737, 2020, doi: 10.1109/TSG.2020.2997956.
M. H. Ullah and J.-D. Park, "Peer-to-peer energy trading in transactive markets considering physical network constraints," IEEE Transactions on Smart Grid, vol. 12, no. 4, pp. 3390-3403, 2021, doi: 10.1109/TSG.2021.3063960.
S. Suthar and N. M. Pindoriya, "Chance-constrained co-optimization of peer-to-peer energy trading and distribution network operations," Sustainable Energy, Grids and Networks, vol. 38, p. 101344, 2024, doi: 10.1016/j.segan.2024.101344.
C. Feng, B. Liang, Z. Li, W. Liu, and F. Wen, "Peer-to-peer energy trading under network constraints based on generalized fast dual ascent," IEEE Transactions on Smart Grid, vol. 14, no. 2, pp. 1441-1453, 2022, doi: 10.1109/TSG.2022.3162876.
N. Tarashandeh and A. Karimi, "Peer-to-peer energy trading under distribution network constraints with preserving independent nature of agents," Applied Energy, vol. 355, p. 122240, 2024, doi: 10.1016/j.apenergy.2023.122240.
T. Morstyn, A. Teytelboym, C. Hepburn, and M. D. McCulloch, "Integrating P2P energy trading with probabilistic distribution locational marginal pricing," IEEE Transactions on Smart Grid, vol. 11, no. 4, pp. 3095-3106, 2019, doi: 10.1109/TSG.2019.2963238.
Z. Li, C. S. Lai, X. Xu, Z. Zhao, and L. L. Lai, "Electricity trading based on distribution locational marginal price," International Journal of Electrical Power & Energy Systems, vol. 124, p. 106322, 2021, doi: 10.1016/j.ijepes.2020.106322.
M. Babagheibi, S. Jadid, and A. Kazemi, "Distribution locational marginal pricing for congestion management of an active distribution system with renewable-based microgrids under a privacy-preserving market clearing approach and load models," Sustainable Energy, Grids and Networks, vol. 32, p. 100935, 2022, doi: 10.1016/j.segan.2022.100935.
M. I. Azim, W. Tushar, and T. K. Saha, "Coalition graph game-based P2P energy trading with local voltage management," IEEE transactions on smart grid, vol. 12, no. 5, pp. 4389-4402, 2021, doi: 10.1109/TSG.2021.3070160.
M. Z. Liu, L. F. Ochoa, P. K. Wong, and J. Theunissen, "Using OPF-based operating envelopes to facilitate residential DER services," IEEE Transactions on Smart Grid, vol. 13, no. 6, pp. 4494-4504, 2022, doi: 10.1109/TSG.2022.3188927.
B. Liu, J. H. Braslavsky, and N. Mahdavi, "Linear OPF-based robust dynamic operating envelopes with uncertainties in unbalanced distribution networks," Journal of Modern Power Systems and Clean Energy, vol. 12, no. 4, pp. 1320-1326, 2023, doi: 10.35833/MPCE.2023.000653.
M. I. Azim et al., "Dynamic operating envelope-enabled P2P trading to maximize financial returns of prosumers," IEEE Transactions on Smart Grid, vol. 15, no. 2, pp. 1978-1990, 2023, doi: 10.1109/TSG.2023.3297366.
M. M. Hoque, M. Khorasany, M. I. Azim, R. Razzaghi, and M. Jalili, "Dynamic operating envelope-based local energy market for prosumers with electric vehicles," IEEE Transactions on Smart Grid, vol. 15, no. 2, pp. 1712-1724, 2023, doi: 10.1109/TSG.2023.3302270.
P. Mochi and K. S. Pandya, "Dynamic Operating Envelope for Cost Optimization in Local Peer-to-Peer Energy Market," in 2023 International Conference on Energy, Materials and Communication Engineering (ICEMCE), 2023, pp. 1-6: IEEE, doi: 10.1109/ICEMCE57940.2023.10433960.
M. Khorasany, A. S. Gazafroudi, R. Razzaghi, T. Morstyn, and M. Shafie-khah, "A framework for participation of prosumers in peer-to-peer energy trading and flexibility markets," Applied energy, vol. 314, p. 118907, 2022, doi: 10.1016/j.apenergy.2022.118907.
M. Z. Golambahri, M. Shakarami, and M. Doostizadeh, "Security-aware joint energy and flexibility trading in electricity-heat networks: A novel clearing and validation analysis," International Journal of Electrical Power & Energy Systems, vol. 157, p. 109901, 2024, doi: 10.1016/j.ijepes.2024.109901.
S. Feng, W. Wei, and Y. Chen, "Day-ahead scheduling and online dispatch of energy hubs: A flexibility envelope approach," IEEE Transactions on Smart Grid, vol. 15, no. 3, pp. 2723-2737, 2023, doi: 10.1109/TSG.2023.3337629.
S. P. Boyd and L. Vandenberghe, Convex optimization. Cambridge university press, 2004.
M. Zhu and E. Frazzoli, "Distributed robust adaptive equilibrium computation for generalized convex games," Automatica, vol. 63, pp. 82-91, 2016, doi: 10.1016/j.automatica.2015.10.012.
C. Huang, M. Zhang, C. Wang, N. Xie, and Z. Yuan, "An interactive two-stage retail electricity market for microgrids with peer-to-peer flexibility trading," Applied energy, vol. 320, p. 119085, 2022, doi: 10.1016/j.apenergy.2022.119085.
M. Babagheibi, S. Jadid, and A. Kazemi, "An Incentive-based robust flexibility market for congestion management of an active distribution system to use the free capacity of Microgrids," Applied energy, vol. 336, p. 120832, 2023, doi: 10.1016/j.apenergy.2023.120832.
Z. Guo, P. Pinson, S. Chen, Q. Yang, and Z. Yang, "Chance-constrained peer-to-peer joint energy and reserve market considering renewable generation uncertainty," IEEE transactions on smart grid, vol. 12, no. 1, pp. 798-809, 2020, doi: 10.1109/TSG.2020.3019603.
J. C. Lozano, K. Koneru, N. Ortiz, and A. A. Cardenas, "Digital substations and iec 61850: A primer," IEEE Communications Magazine, vol. 61, no. 6, pp. 28-34, 2023, doi: 10.1109/MCOM.001.2200568.
P. CODE, "Communication networks and systems for power utility automation–Part 7-420: Basic communication structure–Distributed energy resources logical nodes," Communication networks and systems for power utility automation-Part, pp. 7-420, ISBN 978-2-88910-578-6.
A. M. Eltamaly, M. A. Alotaibi, A. I. Alolah, and M. A. Ahmed, "IoT-based hybrid renewable energy system for smart campus," Sustainability, vol. 13, no. 15, p. 8555, 2021, doi: 10.3390/su13158555.
