Network Sustainability Enhancement Through Optimal Fairness Management for Peer-to-Peer Energy Trading

In a prosumer rich environment, most of the peers are likely to be equipped with distributed resources based facilities, this results in network sustainability enhancement if the fairness of energy trading be optimally managed through the network. Developing a decentralized energy pricing methodology while considering the proper arrangement of the network is inevitable. This paper proposes a new approach for conducting effective negotiations between peers in a novel peer-to-peer (P2P) architecture to contrive a fair energy trading mechanism by enhancing the authority of benefiting the grid for all peers through their transactions. The proposed methodology increases the market participants’ welfare as well as improves the system’s operational conditions and derives a dynamic network usage price (NUP) in contrast to conventional P2P and available works. Also, fairness in energy trading is developed here for P2P trading by addressing the derived network utilization welfare function in which those transactions that impose negative impacts on the network condition are effectively prevented to enhance the fairness of the grid without sacrificing accessibility to generation for demands. Requiring low computational burdens as well as low information exchange are other innovations that are achieved by implementing the proposed algorithms. The effectiveness and performance of the proposed approach are verified by means of extensive simulation studies and the obtained results show fast convergence, scalability, readily implemented, and guaranteeing maximum peer’s welfare as well as optimal network fairness of the proposed approach.