Peer-to-peer energy trading in energy local area network considering decentralized energy routing

Peer-to-peer (P2P) energy trading is perceived as a promising energy management mechanism for decentralized renewable energy sources. The concept of energy local area network (e-LAN) is proposed as a new system framework for future microgrids to facilitate P2P trading where the end-to-end power delivery is achieved by energy routing. Decentralized P2P trading in e-LAN requires a perfectly competitive market and flexible end-to-end power delivery. In this paper, a new P2P trading model incorporating decentralized energy routing is proposed for e-LAN. The proposed model is composed of a P2P energy market and a loss compensation market. In the P2P energy market, a tripartite graph model is proposed to represent transactions where trading decisions and energy routing are jointly considered for each participant to pursue its optimal benefit. Considering the size problem and nonlinear weights of the tripartite graph, an extended depth-first branch-and-bound algorithm is proposed to prune low-efficiency paths. Based on the pruned tripartite graph, the competitive P2P market is captured by a multi-leader multi-follower Stackelberg game model. A loss compensation market is established to coordinate energy routing paths planned in a decentralized manner. By means of setting the price for utilizing each transmission line, the loss compensation market avoids network congestion and ensure a normal operation of e-LAN. Simulation results show that the proposed model can bring higher utilities for P2P participants compared with the existing P2P trading models in e-LAN. Additionally, the effectiveness of the proposed model in resolving path conflicts in a decentralized fashion and improving computation efficiency, are verified.