Fair Prosumer Participation in P2P Energy Markets: An Iterative Water–Filling Algorithm for Congestion Control

This paper proposes a novel solution that ensures fair prosumer participation in Peer-to-Peer (P2P) energy markets while controlling congestion through the use of a Fair Water-Filling algorithm. The proposed method guarantees the exchange of energy between participants without violating network constraints through the fair allocation of curtailments among the prosumers' injections. The algorithm is employed to achieve near-optimal performance and impart a higher degree of fairness among market participants. The proposed methodology is tested on the IEEE 33-node test feeder, and the results indicate that the algorithm effectively ensures fair participation among market participants while accommodating network constraints and promoting economic benefits to all participants. The results of this are expected to attract interest from policymakers, energy providers, and researchers exploring fairness during energy transactions in local energy markets respecting the network constraints.