A P2P-Dominant Distribution System Architecture

Peer-to-peer interactions between small-scale energy resources exploit distribution network infrastructure as an electricity carrier, but remain financially unaccountable to electric power utilities. This status-quo raises multiple challenges. First, peer-to-peer energy trading reduces the portion of electricity supplied to end-customers by utilities and their revenue streams. Second, utilities must ensure that peer-to-peer transactions comply with distribution network limits. This article proposes a peer-to-peer energy trading architecture, in two configurations, that couples peer-to-peer interactions and distribution network operations. The first configuration assumes that these interactions are settled by the utility in a centralized manner, while the second one is peer-centric and does not involve the utility. Both configurations use distribution locational marginal prices to compute network usage charges that peers must pay to the utility for using the distribution network.

[1]  Ralph Masiello,et al.  Locational Marginal Value of Distributed Energy Resources as Non-Wires Alternatives , 2020, IEEE Transactions on Smart Grid.

[2]  Anthony Papavasiliou,et al.  Analysis of Distribution Locational Marginal Prices , 2018, IEEE Transactions on Smart Grid.

[3]  H. Ben Ahmed,et al.  Exogenous Approach to Grid Cost Allocation in Peer-to-Peer Electricity Markets , 2018, ArXiv.

[4]  Jianhui Wang,et al.  Energy Crowdsourcing and Peer-to-Peer Energy Trading in Blockchain-Enabled Smart Grids , 2019, IEEE Transactions on Systems, Man, and Cybernetics: Systems.

[5]  Jonathan Mather,et al.  Blockchains for decentralized optimization of energy resources in microgrid networks , 2017, 2017 IEEE Conference on Control Technology and Applications (CCTA).

[6]  Jose M. Yusta,et al.  Maximum savings approach for location and sizing of capacitors in distribution systems , 2008 .

[7]  Jianhui Wang,et al.  Blockchain-Assisted Crowdsourced Energy Systems , 2018, 2018 IEEE Power & Energy Society General Meeting (PESGM).

[8]  Ganguk Hwang,et al.  Contribution-Based Energy-Trading Mechanism in Microgrids for Future Smart Grid: A Game Theoretic Approach , 2016, IEEE Transactions on Industrial Electronics.

[9]  José Pablo Chaves-Ávila,et al.  A review of the value of aggregators in electricity systems , 2017 .

[10]  Steven H. Low,et al.  Branch Flow Model: Relaxations and Convexification—Part I , 2012, IEEE Transactions on Power Systems.

[11]  Vera Demary,et al.  Competition in the sharing economy , 2015 .

[12]  A. Cavoukian,et al.  SmartPrivacy for the Smart Grid: embedding privacy into the design of electricity conservation , 2010 .

[13]  Michael C. Caramanis,et al.  Co-Optimization of Power and Reserves in Dynamic T&D Power Markets With Nondispatchable Renewable Generation and Distributed Energy Resources , 2016, Proceedings of the IEEE.

[14]  P. Pinson,et al.  Exogenous Cost Allocation in Peer-to-Peer Electricity Markets , 2019, IEEE Transactions on Power Systems.

[15]  Thomas Morstyn,et al.  Bilateral Contract Networks for Peer-to-Peer Energy Trading , 2019, IEEE Transactions on Smart Grid.

[16]  Massimo Filippini,et al.  Boundedly rational consumers, energy and investment literacy, and the display of information on household appliances , 2017, Resource and Energy Economics.

[17]  Gregor Verbic,et al.  Decentralized P2P Energy Trading Under Network Constraints in a Low-Voltage Network , 2018, IEEE Transactions on Smart Grid.

[18]  Young-Hun Lim,et al.  Distributed Coordination for Optimal Energy Generation and Distribution in Cyber-Physical Energy Networks , 2018, IEEE Transactions on Cybernetics.

[19]  Steven H. Low,et al.  Convex Relaxation of Optimal Power Flow—Part II: Exactness , 2014, IEEE Transactions on Control of Network Systems.

[20]  Pierre Pinson,et al.  Consensus-Based Approach to Peer-to-Peer Electricity Markets With Product Differentiation , 2018, IEEE Transactions on Power Systems.

[21]  Paul L. Joskow.  Why do we need electricity retailers?; or, can you get it cheaper wholesale? , 2000 .

[22]  Felix F. Wu,et al.  Network Reconfiguration in Distribution Systems for Loss Reduction and Load Balancing , 1989, IEEE Power Engineering Review.

[23]  Thomas Morstyn,et al.  Using peer-to-peer energy-trading platforms to incentivize prosumers to form federated power plants , 2018, Nature Energy.

[24]  Yingchen Zhang,et al.  Composite socio-technical systems: A method for social energy systems , 2017, 2017 IEEE International Conference on Systems, Man, and Cybernetics (SMC).

[25]  Benjamin Sovacool,et al.  Electricity market design for the prosumer era , 2016, Nature Energy.

[26]  M. Ostrovsky.  Stability in Supply Chain Networks , 2005 .

[27]  Thomas Morstyn,et al.  Multiclass Energy Management for Peer-to-Peer Energy Trading Driven by Prosumer Preferences , 2019, IEEE Transactions on Power Systems.

[28]  Wayes Tushar,et al.  Transforming Energy Networks via Peer to Peer Energy Trading: Potential of Game Theoretic Approaches , 2018, IEEE Signal Process. Mag..

[29]  Iain Dunning,et al.  Computing in Operations Research Using Julia , 2013, INFORMS J. Comput..

[30]  Yury Dvorkin,et al.  Distribution Electricity Pricing Under Uncertainty , 2019, IEEE Transactions on Power Systems.

[31]  Steven H. Low,et al.  Branch Flow Model: Relaxations and Convexification—Part II , 2012 .

[32]  Ignacio J. Pérez-Arriaga,et al.  A regulatory framework for an evolving electricity sector: Highlights of the MIT utility of the future study , 2017 .