An Equilibrium Model of Power System with Peer-to-Peer Energy Transaction

The technology advancement and cost decline of renewable and sustainable energy increase the penetration of distribution energy resources (DERs) in power system. Peer-to-Peer (P2P) market is a typical energy transaction scheme in the smart grid. In a P2P market, a peer can share his surplus energy with local peers. Such a market mechanism can increase the revenue of DERs owners and reduce consumers’ energy cost. P2P transaction has attracted wide attention from researchers. This paper proposes an equilibrium framework to model P2P energy transaction at multiple nodes. The structure of the market is given and stakeholders’ optimal function is formulated as the joint Karush-Kuhn-Tucker (KKT) conditions of the optimization problems of individual participants, which can be further solved via a mixed-integer linear program (MILP). The energy flow is further embedded in the optimal power flow problem to ensure network operating constraints. Finally, case study demonstrates that our proposed P2P market benefits all participants.