A Bid Limit-based P2P Energy Trading Framework

The increasing penetration of distributed energy resources in distribution network has prompted the development and implementation of decentralized energy markets. Peer-to-Peer (P2P) energy trading is one of the most viable options for establishing a decentralized energy market. A distribution network capable of handling multiple energy transactions and a secure, user-friendly, and equally accessible trading platform are some of the critical requirements for the successful implementation of P2P energy trading. With the aforementioned considerations in mind, this paper proposes a bid limit-based network-aware P2P energy trading framework comprised of two algorithms: (i) an OPF-based maximum bid limit estimation algorithm and (ii) a market-clearing mechanism. It aims to (i) minimize back-and-forth communication required between the distribution system operator and the participants and (ii) increase the likelihood of participants qualifying for P2P energy trading. The framework is implemented on modified three-phase unbalanced IEEE-13 bus distribution network having prosumers, consumers, and independent power producers.