Role of Power System Operator in Initiating Peer-to-Peer Energy Trading in the Distribution Networks

During energy crises, renewable energy sources have always come as a solution. These renewable sources can be utilized efficiently if they are shared. This paper proposes a scheme to influence particular-class electricity customers to participate in Peer-to-peer namely P2P energy trading to reduce the load during peak hours. For this, an algorithm is suggested to be adapted by the grids to control the energy-consuming capacity and price during peak hours. This presumably encourages participation in the P2P energy trading. To regulate the price, an auction algorithm is suggested in this study. The algorithm leverages the lambda-iteration method for optimum generation and cost minimization. A plausible study based on empirical data is conducted and compared. The result shows around a 28 % reduction in regular price which indicates the P2P as a profitable energy management system.