Hybrid trading scheme for peer-to-peer energy trading in transactive energy markets

This study proposes a hybrid energy trading scheme for peer-to-peer (P2P) energy trading in transactive energy markets. Market players can participate in different markets, including local markets, trading with neighbourhood areas, and traditional trading with the grid. In each local market, a community manager (CM) facilitates energy trading and negotiates with other CMs for neighbourhood trading. Based on the heterogeneous preferences of players of each community, each local market has a different price, which is different from market price for neighbourhood trading and trading with the grid. A distributed market clearing mechanism is presented that incorporates coordination among different markets. Also, a network utilisation charge function is defined to apply price signals to the market players to reflect network constraints in energy trading. These price signals are calculated based on the technical constraints in each market and are applied to the corresponding players based on their contribution to network constraints violation. Performance of the proposed trading scheme is evaluated against different market structures and through several case studies.