Peer-to-Peer Trading in Distribution Systems with the Utility's Operation

To realize a liberalized peer-to-peer (P2P) electricity market in distribution systems with network security, this paper develops a general framework for P2P trading in distribution systems with the utility's operation. The model is formulated as a bi-level programming. The utility's operation is an upper level problem, where a calculation method of network usage charges for P2P trading is also proposed. Peers' P2P trading is a lower level problem. An iterative algorithm based on analytical target cascading (ATC) is proposed to solve the model, where the interactions between utility and peers are presented. Numerical results on the IEEE 33-bus system demonstrate that the proposed method realizes a liberalized P2P market and ensures network security in distribution systems.