Transmission loss-aware peer-to-peer energy trading in networked microgrids

Abstract

Peer-to-peer (P2P) energy trading built on a smart information system in networked microgrids (MGs) is an emerging economic approach to facilitate energy sharing among networked MGs to achieve mutual cost-effective operation and improve the reliability and stability of energy supply service. Such a distributed market urges the need for an efficient energy trading strategy that incentivizes self-interested MGs to participate in energy trading. In this paper, we propose a distributed real-time P2P energy trading strategy that integrates energy trading into energy management and enables MGs with renewable energy sources (RESs) and energy storage systems (ESSs) to manage their storage scheduling, energy supply and energy trading in a dynamic manner. Jointly considering the randomness of renewable energy generation, the time-dependent load demand, the operational constraints of ESSs and the distance-dependent energy transmission losses associated with energy exchange, the proposed energy control and trading mechanism minimizes the time average operational costs of individual MGs while reducing energy transmission losses within the system.