Optimal Prosumers’ Peer-to-Peer Energy Trading and Scheduling in Distribution Networks

The emergence of prosumers in the distribution networks provides the proactive local management of distributed energy resources (DERs) and distributed energy trading. A bilevel framework of prosumers is proposed, enabling the joint optimization of the internal scheduling and external peer-to-peer (P2P) trading. Interactive benefit is defined as the marginal response cost. On the lower prosumer scheduling level, instead of concurrent scheduling process considering merely internal DERs’ response, interactive benefits of the DERs and the P2P trading are both taken into consideration while solving prosumers’ scheduling problem. Subsequently, a cooperative interaction method using the interactive benefit prioritization principle is proposed for the joint optimization problem in prosumer, considering both internal and external strategies. On the upper P2P trading level, an iterative bilateral negotiation algorithm is proposed, integrated with network charges. The proposed algorithm enables trading peers to reach an agreement, without the intervention of DSO. As a means to attribute the costs incurred by P2P trades to prosumers, the network charges include the congestion and loss costs, and the maintenance and modernization costs. Finally, the proposed method is implemented and benchmarked on a test case using the IEEE 33 bus system. The effectiveness of the method is verified in terms of promoting the consumption of DERs and prosumers’ benefits. Also, it is verified that the appropriate network charges may facilitate both the P2P trades and the secure operation.