Trading Arrangements and Cost Allocation in P2P Energy Markets on Low-Voltage Networks

The paper analyses different trading arrangements in the context of peer-to-peer (P2P) trading. Building on our previous work presented in [1], we use a sensitivity analysis to estimate the impact of each P2P transaction in the network to determine the attribution of costs related to power losses and utilization of the network. We take a closer look at three network partitions which might be imposed by the distribution system operator (DSO) to minimize transaction costs as well as to offer alternative trading options for end-users. We present a case study of P2P energy trading under network constraints using a UK distribution network to compare the different aspects of each trading arrangement and to evaluate the proposed mechanism. We show that even in the case where transaction costs are comparatively higher due to larger electrical distances between trading partners, the users might still be better off because they can trade more power.