P2P Energy Trading: Peer Matching and Price Negotiation Considering Network Usage Charges

Peer-to-Peer(P2P) energy trading is a widely acknowledged methodology for local energy transactions with widespread distributed renewable installation, supporting local area balancing. Peer-matching aligns demand-supply bids with attractive energy price offers to maximize prosumer participation. However, focusing only on better price offers without considering network use may lead to increased losses and congestion to the local grid and, eventually prosumers' revenue loss. Post-peer matching, fair peer-centric energy trading price addressing prosumers' behaviour and market dynamics is essential. This paper proposes an iterative one-to-many peer-matching algorithm integrating Network Usage Charges(NUCs) for peer matching and a fair peer-centric energy pricing algorithm using alternating offer Nash bargain negotiation mechanism. Iterative one-to-many peer-matching algorithm will reduce utility grid's interference. NUCs are calculated through distribution locational marginal pricing reflecting network operational cost. The price negotiation algorithm considers market dynamics and prosumers' greediness for energy pricing. Simulation results on the proposed approach enhance prosumer participation and reduce reliance on utility grid. NUC's consideration in mitigating network congestion and losses resulting from energy transactions is highlighted. Finally, fair energy trading price is determined among matched peers.