Enabling Peer-to-Peer Transactions in Measurement-Based Distribution System Market

This paper presents a measurement-based electricity market structure to establish peer-to-peer (P2P) transactions along with imports from or exports to the upstream network. A key benefit of the proposed P2P market is that participants therein can fully express their proclivities by setting their individual preferences for buying and selling partners independently. Moreover, resulting P2P transactions satisfy power flow constraints of the underlying distribution system without needing an offline network model. Instead, we estimate a linear sensitivity model mapping bus voltages to injections using only online measurements collected from P2P market participants, which is then embedded as an equality constraint in an optimal power flow (OPF) problem. The OPF problem minimizes total cost of P2P transactions incurred to market participants capturing network usage fees, buying/selling preferences, net import/export cost, and operation cost. The optimal solution of the OPF problem comprises the P2P transactions (specifying partners, quantity, and price for each trade), the optimal dispatch, as well as locational marginal prices at buses where measurements are collected. Via numerical simulations involving a 22-bus test system, we demonstrate the effectiveness of the proposed method to establish P2P transactions that respect individual preferences; we also validate notable properties pertaining to the trade prices.