A dynamic framework for optimizing peer-to-peer energy sharing: Enhancing local consumption and reducing power losses in smart grids

Abstract

The integration of distributed energy resources has enabled peer-to-peer energy sharing (P2PES), offering an innovative approach to energy planning. While previous research has focused on the economic benefits of P2PES for users, it often overlooks strategic network responses. This paper presents a P2PES framework that incorporates dynamic network architecture. The framework's core involves developing a P2PES model aimed at increasing local energy consumption and reducing electrical losses during peer-to-peer (P2P) exchanges. Additionally, a dynamic grid structure model facilitates active grid operator participation in optimizing grid structure and reducing power losses. These dual models synergize, sharing information to optimize P2PES programs, network operations, and energy utilization. The framework's coordination is achieved through an algorithm combining a matching mechanism with a branch exchange method, refined iteratively to enhance performance. Numerical analysis demonstrates the framework's effectiveness, showing an 18.31 % improvement with joint optimization strategies. Additionally, incorporating distribution system operator switching strategies results in a 31.69 % reduction in total network power losses and a 2.81 % increase in local energy consumption. This highlights not only buyer strategies but also dynamic network evolution, emphasizing the framework's practical feasibility in electrical engineering.