Peer-to-peer electricity transactions considering electricity grid constraints

Abstract

This paper presents a methodology for the optimization of bilateral point-to-point power transactions between prosumers/electricity consumers, taking into account the physical constraints of the power grid, aiming to minimize the total cost of electricity expenditures. As a resolution strategy, the optimization problem is divided into two stages. The first consists of a purely energy problem, in which prosumers/consumers establish energy exchanges in an efficient manner, in order to obtain an adequate balance between demand and total system generation. The second stage is physical, in which the grid constraints are modeled, such as maximum line loading and bus voltage level. A 14-bar system with 19 peers (agents) that also considers the possibility of switching with an external grid, which can be another set of peers, another energy community, or simply the grid under the responsibility of the local utility, is modeled for the evaluation of the proposed methodology. The proposed method proved to be effective because it achieved results where the operation of the electric grid is feasible.