A Holistic P2P market for active and reactive energy trading in VPPs considering both financial benefits and network constraints

Meng, Y; Qiu, J; Zhang, C; Lei, G; Zhu, J

A Holistic P2P market for active and reactive energy trading in VPPs considering both financial benefits and network constraints

Meng, Y Qiu, J Zhang, C Lei, G

Zhu, J

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Publisher:: ELSEVIER SCI LTD
Publication Type:: Journal Article
Citation:: Applied Energy, 2024, 356
Issue Date:: 2024-02-15

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Field	Value	Language
dc.contributor.author	Meng, Y
dc.contributor.author	Qiu, J
dc.contributor.author	Zhang, C
dc.contributor.author	Lei, G https://orcid.org/0000-0002-8369-6802
dc.contributor.author	Zhu, J
dc.date.accessioned	2025-01-20T01:45:58Z
dc.date.available	2025-01-20T01:45:58Z
dc.date.issued	2024-02-15
dc.identifier.citation	Applied Energy, 2024, 356
dc.identifier.issn	0306-2619
dc.identifier.issn	1872-9118
dc.identifier.uri	http://hdl.handle.net/10453/183848
dc.description.abstract	Due to the rise of distributed energy resources (DERs), virtual power plants (VPPs) have gained intensive academic and industrial attention. While current centralized VPPs benefit from their large aggregated capacity in the wholesale market, they lack effective incentivizing participants for asset investment and market participation. Conversely, the peer-to-peer (P2P) market offers better profits for prosumers through direct trading; however, transactions hinge on approval from associated authorities, such as electricity retailers, who read their power meters. Such an approval procedure becomes complex, even impossible, when more retailers are involved. Hosting the P2P market in a VPP environment can conveniently resolve this issue. This paper proposes a novel holistic P2P (H-P2P) market model hosted in a VPP environment to provide the VPP participants with financial incentives and optimize the network and market operations simultaneously. The proposed new market structure and trade principle allow the proposed H-P2P market to trade active and reactive energies for both financial benefits and network constraints. Using the novel transactive voltage/VAR control (TVVC) method proposed in this paper, the reactive energy trading through the P2P market can support effective voltage regulation and incentivize the VPP participants to provide such voltage control ancillary services actively. Finally, a novel multi-stage P2P negotiation process is introduced to divide the VPP regulatory, active and reactive energy convergence stages, which allows faster P2P decision-making with improved computing efficiency than the conventional multi-period alternating direction method of multipliers (ADMM). The case study validates that the proposed H-P2P market can increase the financial incentives of the prosumers who install PVs and batteries by a large extent and the pure load units by a relatively smaller percentage.
dc.language	English
dc.publisher	ELSEVIER SCI LTD
dc.relation.ispartof	Applied Energy
dc.relation.isbasedon	10.1016/j.apenergy.2023.122396
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	09 Engineering, 14 Economics
dc.subject.classification	Energy
dc.subject.classification	33 Built environment and design
dc.subject.classification	38 Economics
dc.subject.classification	40 Engineering
dc.title	A Holistic P2P market for active and reactive energy trading in VPPs considering both financial benefits and network constraints
dc.type	Journal Article
utslib.citation.volume	356
utslib.for	09 Engineering
utslib.for	14 Economics
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Engineering and Information Technology
pubs.organisational-group	University of Technology Sydney/Faculty of Engineering and Information Technology/School of Electrical and Data Engineering
utslib.copyright.status	open_access	*
dc.rights.license	This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0). To view a copy of this license, visit https://creativecommons.org/licenses/by/4.0/
dc.date.updated	2025-01-20T01:45:56Z
pubs.publication-status	Published
pubs.volume	356

Abstract:

Due to the rise of distributed energy resources (DERs), virtual power plants (VPPs) have gained intensive academic and industrial attention. While current centralized VPPs benefit from their large aggregated capacity in the wholesale market, they lack effective incentivizing participants for asset investment and market participation. Conversely, the peer-to-peer (P2P) market offers better profits for prosumers through direct trading; however, transactions hinge on approval from associated authorities, such as electricity retailers, who read their power meters. Such an approval procedure becomes complex, even impossible, when more retailers are involved. Hosting the P2P market in a VPP environment can conveniently resolve this issue. This paper proposes a novel holistic P2P (H-P2P) market model hosted in a VPP environment to provide the VPP participants with financial incentives and optimize the network and market operations simultaneously. The proposed new market structure and trade principle allow the proposed H-P2P market to trade active and reactive energies for both financial benefits and network constraints. Using the novel transactive voltage/VAR control (TVVC) method proposed in this paper, the reactive energy trading through the P2P market can support effective voltage regulation and incentivize the VPP participants to provide such voltage control ancillary services actively. Finally, a novel multi-stage P2P negotiation process is introduced to divide the VPP regulatory, active and reactive energy convergence stages, which allows faster P2P decision-making with improved computing efficiency than the conventional multi-period alternating direction method of multipliers (ADMM). The case study validates that the proposed H-P2P market can increase the financial incentives of the prosumers who install PVs and batteries by a large extent and the pure load units by a relatively smaller percentage.

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http://hdl.handle.net/10453/183848