Decentralized Peer-to-Peer Energy Trading for Prosumers Considering Demand Response Program

Abstract

In this paper, the peer-to-peer energy trading is performed between prosumers with energy surplus in the role of seller and prosumers with energy shortage in the role of buyer. In the proposed model, buyers, in addition to participating in local trading, can supply their demand shortage from the upstream market. These players can also participate in a price-based demand response program in a fully decentralized way to manage their energy and increase their welfare. The proposed problem is a fully decentralized problem that requires a decentralized approach to clear. In this paper, the decentralized alternating direction method of multipliers (ADMM) is used to solve the proposed problem. Numerical studies have been performed on a small distribution system with four sellers and three buyers. Numerical results show that the proposed model is a fully decentralized method, and the proposed approach ensures the convergence of negotiations and trading.