Two-Tier Peer-to-Peer Transactive Energy Market

Abstract

As technology advances and the utilization of renewable energy sources (RESs) increases, peer-to-peer (P2P) energy trading has become a noteworthy strategy in the local energy market. This work introduces an integrated transactive energy market with the active participation of distributed generations (DGs) and distribution system operator (DSO) and facilitates P2P energy trading models for flexible loads and RES equipped buildings. A distribution locational marginal price (DLMP) and modified Nash bargaining solution strategy are employed to ensure fair distribution of economic benefits. Equilibrium strategies for all participants are achieved through a decentralized approach that preserves their privacy. For each group of buildings, a virtual community (VC), a shareable battery energy storage is integrated, and uncertainties concerning RESs are addressed using Hong's 2m point estimation method. This paper also proposes an algorithm for real-time execution to ensure the maintenance of network constraints and energy balance based on day-ahead market commitments and RES deviations. A real-time digital simulator (RTDS) is used to validate the energy sharing. © 1972-2012 IEEE.