ANDORRA - A Novel loss-aware energy traDing framewOk foR Residential communities: Application to smart grids

The emergence of smart grids to replace conventional power grids is mainly characterized by the integration of renewable energy sources (RESs), with wind and solar being the most dominant due to their affordability and ease of installation. However, their intermittent nature can impact the reliability of the power system. Battery energy storage systems (BESSs) have proven to be an effective solution to address this intermittency by storing excess energy for later use. In addition, there is growing interest in creating residential communities and sharing a single BESS among neighbors. However, the subsequent charging and discharging of the shared BESS can result in significant energy losses within the community. Direct energy exchange between neighbors could be a solution to this problem since it reduces the use of the BESS, but energy losses may also occur during the exchange due to the distance traveled by the energy to be delivered. In this context, we propose in this paper ANDORRA, an energy trading framework for residential communities that optimizes hourly exchange operations to minimize energy losses. We propose a mathematical formulation of the trading problem and solve it using two distinct methods: Lagrange multipliers and particle swarm optimization (PSO). Our framework is tested on real data from a residential community, and the results show that the Lagrange multipliers method outperforms the PSO algorithm by reducing energy losses by 40.95%, energy consumption by 92.41%, and execution time by 96%.