Assessing the Impact of Peer-to-Peer Markets on Distribution Grid Operation

Abstract

Due to the considerable increase of distributed energy resources, a new model of energy trading called peer-to-peer (P2P) has emerged in local energy communities that play a key role in the proliferation of renewable energy sources. However, although local and distributed power trading allows for a more decentralized and open grid, these models have a significant impact on the control, operation, and planning of the electricity distribution grid. Thus, reducing the demand for power at an affordable price is one of the main objectives of P2P markets, considering the different voltage limits and possible congestion existing in the distribution system. Thus, the main goal of this work is to evaluate the impact of the P2P market on the distribution network operation. This work includes an energy community in a neighborhood involving nine connected houses and one school, involving different renewable technologies and energy storage systems installed in each consumer and/or prosumer. The simulation results indicate that in the presence of local distributed generation and the inclusion of energy storage devices and electric vehicles allow a high-cost reduction (16%) and a very positive impact on the distribution system in terms of congestion and voltage deviations.