ADMM-based Privacy-Preserving Peer-to-Peer Energy Trading Negotiation Mechanism

The rapid development of demand response management and distributed energy has promoted the development of P2P energy trading mechanisms, making electricity market participants more active. However, how to prevent private information from being reached by malicious agents during P2P negotiation process is a challenging problem. This paper proposes a privacy protection decentralized optimization method for P2P energy trading based on consensus Alternating Direction Method of Multipliers (ADMM) and Partially Homomorphic Encryption (HE). Firstly, the general model of P2P electricity market and the P2P trading negotiation mechanism based on consensus ADMM are introduced. However, under this mechanism, malicious neighbor agents can collude to steal private information. In order to resist collusion attack, a two-party secure computation mechanism between each pair of agents is designed, and the energy amount and price are updated in a secure way without leaking any private information. The privacy-preserving mechanism can find a trade-off between the convergence efficiency and information security. Finally, the function of the privacy protection negotiation mechanism was simulated in terms of convergence performance, impact on social welfare and computational efficiency.