Dynamic Operating Envelope-Integrated Cooperative Energy Trading: A Fair Allocation Approach

Abstract

This paper proposes a fair allocation approach for dynamic operating envelope-integrated local energy trading with the intention of offering financial benefits to electricity customers unbiasedly while ensuring distribution network integrity. To do so, first, a distribution network model-aware dynamic operating envelope computation approach is proposed, and network allocation fairness is incorporated by imposing uniform export and import curtailments. Secondly, with allocated dynamic operating envelopes, a coalition graph game-based peer-to-peer trading mechanism is proposed that allows peer-to-peer participants to decide on their financial deals through mutual interactions. The fundamental properties of the proposed coalition graph game-based peer-to-peer trading are also studied to demonstrate its cooperation profitability as well as payoff allocation stability and fairness. Finally, a fair dynamic operating envelope-integrated coalition graph game-based peer-to-peer trading algorithm is proposed and validated on a real low-voltage Australian distribution network. The simulation results confirm that the proposed dynamic operating envelope-integrated cooperative peer-to-peer trading not only maintains the network constraints within the physical limits but also enables coalition participants to attain noticeable financial gains, e.g., 0.9 and 0.76 Australian dollars on average more than business as usual and standard coalition game, respectively, over the course of a sample day.