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Fully Decentralized Peer-to-Peer Community Grid with Dynamic and Congestion Pricing

Peer-to-peer (P2P) electricity markets enable prosumers to minimize their costs, which has been extensively studied in recent research. However, there are several challenges with P2P trading when physical network constraints are also included. Moreover, most studies use fixed prices for grid power prices without considering dynamic grid pricing, and equity for all participants. This policy may negatively affect the long-term development of the market if prosumers with low demand are not treated fairly. An initial step towards addressing these problems is the design of a new decentralized P2P electricity market with two dynamic grid pricing schemes that are determined by consumer demand. Futhermore, we consider a decentralized system with physical constraints for optimizing power flow in networks without compromising privacy. We propose a dynamic congestion price to effectively address congestion and then prove the convergence and global optimality of the proposed method. Our experiments show that P2P energy trade decreases generation cost of main grid by 56.9% compared with previous works. Consumers reduce grid trading by 57.3% while the social welfare of consumers is barely affected by the increase of grid price.

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