A new method for peer-to-peer energy exchange in distribution grids

In this paper, distribution-level peer-to-peer energy exchange is proposed that allows increased matching between load and generation nodes. Contributions of the proposed improved matching system between the local load and generation nodes aim at making efficient use of unused power generation, reducing the cost of electrical energy for consumers, and assisting utility companies by reducing transmission line congestion. The proposed system for matching the load and generation nodes consists of a financial layer and technical layer. In the financial layer, nodes with an excess of energy provide a price to sell energy, while the nodes needing energy bid on a price to purchase energy. A market-clearing mechanism using pool clearing is applied to determine a final price for peer-to-peer exchange. The technical layer determines the connection of energy transfer between the generation and load nodes while considering the distance, power flow constraints, and specified time windows. The proposed approach is verified in a five-node system and the results are discussed.