A Peer-to-Peer Joint Kilowatt and Negawatt Trading Framework Incorporating Battery Cycling Degradation

This paper presents a novel unified peer-to-peer (P2P) framework for both kilowatt (kW) and negawatt (nW) trading. The aim is to coordinate these two transaction types and maximize customer benefits, by reducing customers’ electricity bills and helping customers trade energy with their neighbors while also adhering to the physical limits of the electricity networks. An auction-based joint kW and nW P2P trading approach is proposed to enable prosumers to conduct the optimal strategy in switching their market roles between kW and nW trading and scheduling their demand. As such, in the virtual layer, the household energy management system (HEMS) models are formulated to determine the optimal market bidding strategy during each trading period. For the agent equipped with a battery energy storage system (BESS), the battery cycling degradation issue is also considered through the embedded battery cycle life model. A double-sided auction method with an average pricing market (APM) mechanism is performed in P2P kW and nW trading for market clearing. In the physical layer, voltage issues and line congestion management are considered through the distribution network models. The proposed formulation is tested on the modified IEEE 33-bus distribution system and simulation results demonstrate that the proposed framework outperforms the single trading mode.