Chance-constrained co-optimization of peer-to-peer energy trading and distribution network operations

Peer-to-Peer (P2P) energy markets enable participants to trade locally produced electrical energy at a mutually agreed-upon price. Distributed Energy Resources (DERs) and flexible loads are fundamental components of P2P energy markets, facilitating the market participants to supply or consume energy in accordance with trading agreements. Consequently, it is vital to account for the stochastic nature of DERs and load demand while designing the P2P energy trading model in order to attain optimal operation of P2P energy markets and secure operation of the distribution network. The scenario-based and robust optimization techniques commonly used to characterize uncertainty suffer from data requirement, computational burden, and solution conservatism standpoints. This paper, therefore, proposes a chance-constrained model for P2P energy trading considering renewable energy uncertainty and distribution network constraints. The uncertain behaviour of renewable generation resources is modelled using chance constraints and integrated with the decision-making process of the P2P energy market and distribution network operation. The chance-constrained P2P energy trading problem is reformulated as a deterministic equivalent problem that can be solved by readily available commercial solvers. The ex-ante and ex-post-performance of the proposed chance-constrained formulation is evaluated on a 15-bus radial distribution network, while the scalability of the proposed formulation is demonstrated on modified IEEE 33-bus and 69-bus test networks. The results showcase the effectiveness of the proposed chance-constrained model in handling the uncertainty and respecting the network constraints while deriving the P2P energy trading outcomes.