Security-Constrained P2P Energy Trading Strategy via Priced-Based Regularization of ADMM in a Distribution Network

Abstract

The emerging peer-to-peer (P2P) energy market is gaining momentum due to its escalating market value and sustainability, granting prosumers the autonomy to trade and obtain economic benefits. As the market expands and individual energy transactions intensify, ensuring secure operation to maintain the system within safe boundaries becomes vital. This paper introduces a security-constrained P2P energy market strategy for distribution networks (DNs), incorporating price-based regularization via the alternating direction method of multipliers (ADMM). The resulting bid price reflects network constraints, imposing penalty costs or incentives on prosumers based on the energy transaction’s impact on the system. This leads to a clear understanding of the price formation in energy transactions. The proposed market strategy is decentralized and easily implementable, thereby improving market-clearing scalability and computational efficiency. We verified effectiveness and scalability of the proposed strategy, considering network constraints of voltage deviation, line congestion, and power losses, through numerical case studies based on the IEEE 33-node and 119-node test systems. In a 119-node test system involving 500 prosumers, all network constraints were fulfilled with a marginal 0.6% decrease in social welfare compared to a market strategy without regularization. The market-clearing convergence time was approximately 21 seconds, demonstrating its suitability for a short-term, large-scale P2P energy market.

Keywords

• Alternating direction method of multipliers
• distribution network
• energy pricing
• market-clearing strategy
• peer-to-peer energy market