P2P Negawatt Trading: A Potential Alternative to Demand-side Management

This paper presents the formulation of a voltage-constrained peer-to-peer (P2P) negawatt (nW) trading in the low-voltage (LV) distribution network and financial analysis to establish the mechanism as a potential alternative to the demand-side management (DSM). To do so, a P2P market framework is proposed — whereby nW prosumers trade among themselves using a rule-driven algorithm. The physical network constraints are also included in the decision-making process of the proposed P2P nW algorithm so that the voltage variations beyond the prescribed limits can be avoided. Further, the developed P2P nW strategy is deployed on a typical LV distribution network in Australia to validate the model. The simulation results suggest that the proposed P2P nW framework shows superior financial performance in comparison with the DSM by reducing a signif-icant part of energy cost to each participating prosumer. Also, the designed P2P nW method keeps the voltage profiles of the studied network within the acceptable range. Thus, it is suitable for practical deployment.