Impact of Producer's Offering Prices in Peer-to-Peer Electricity Trading on Power Flows in Distribution Grid

The business models for peer-to-peer electricity trading are emerging but number of challenges still must be solved to allow large-scale deployment. The aim of this paper is to investigate effects of producer's offering prices on power flows within a distribution grid where peer-to-peer electricity trading is simulated. The peer-to-peer electricity trading is simulated as a near real-time auction-based local electricity market and tested on the IEEE European low voltage test feeder. That way, the effects on peak load requirements and local energy balance are studied. The results point out that peer-to-peer electricity trading can enhance participation of prosumers which leads to better local demand/supply balancing and reduction of peak demand from the upstream grid.