Clearing

Microeconomics

Game theory

Chemistry

Renewable energy

Energy market

Convergence (economics)

Peer-to-peer

Database

Engineering

Market clearing

Economics

Geometry

Scalability

Biochemistry

Smart grid

Economic growth

Finance

Operator (biology)

Market mechanism

Mathematics

Nash equilibrium

Gene

Mathematical optimization

Macroeconomics

Computer science

Distributed computing

Electrical engineering

Distributed generation

Transcription factor

Repressor

Grid

IEEE Transactions on Smart Grid

In future distribution grids, prosumers (i.e., energy consumers with storage and/or production capabilities) will trade energy with each other and with the main grid. To ensure an efficient and safe operation of energy trading, in this paper, we formulate a peer-to-peer energy market of prosumers as a generalized aggregative game, in which a network operator is only responsible for the operational constraints of the system. We design a distributed market-clearing mechanism with convergence guarantee to an economically-efficient and operationally-safe configuration (i.e., a variational generalized Nash equilibrium). Numerical studies on the IEEE 37-bus testcase show the scalability of the proposed approach and suggest that active participation in the market is beneficial for both prosumers and the network operator.

Operationally-Safe Peer-to-Peer Energy Trading in Distribution Grids: A Game-Theoretic Market-Clearing Mechanism