P2P flexibility markets models to support the coordination between the transmission system operators and distribution system operators

The increasing integration of Distributed Energy Resources (DER) in the distribution network has brought more importance to Peer-to-Peer (P2P) markets. However, energy traded in P2P markets can lead to voltage and congestion constraints in distribution networks operated by Distribution System Operators (DSOs). At the same time, Transmission System Operators (TSOs) may need to solve system problems, requesting the participation of DERs in frequency regulation services. To ensure competitive participation in P2P markets, as well as to ensure a correct operation of distribution networks and to contribute to mitigate problems at the system level, coordination mechanisms between the P2P market and the System Operators (SOs) are required. This paper introduces a set of mathematical models considering P2P flexibility trading at the distribution system, while assisting the DSO and TSO in solving the congestion, voltage and frequency problems, respectively. The models are assessed on an IEEE 37bus distribution network with high DER penetration. The first and second models are based on product differentiation to avoid violating the lines' thermal limits and the nodes' voltage limits, respectively. The second model also considers reactive power control in order to impact voltage constraints. The third model uses a virtual load, connected to the TSO network (before the power transformer), to model frequency regulation services. The last model proposes the integration of all methods. Results showed that each model was effective in solving its constraint. However, they do not dismiss the use of the peers' flexibility assets to assure an overall feasible techno-economic solution. The use of the methodology proposed in the present paper can significantly facilitate the adoption of full P2P markets as well as the confidence of the system operators in the integration of these markets.& COPY; 2023 Elsevier Ltd. All rights reserved.

Automated summary

This paper introduces a set of mathematical models to address voltage and congestion constraints caused by P2P energy trading in distribution networks, as well as system problems requiring DER participation in frequency regulation services. The models are tested on a high DER penetration 37-bus IEEE distribution network.