Virtual Prosumers' P2P Transaction Based Distribution Network Expansion Planning

• Published in: IEEE transactions on power systems Vol. 39; no. 1; pp. 1 - 13
• Main Authors: Yao, Haotian, Xiang, Yue, Liu, Junyong
• Format: Journal Article
• Language: English
• Published: New York IEEE 01-01-2024; The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
• Subjects: Conditional value at risk; Costs; distribution network expansion planning; Distribution networks; Energy sources; Incentives; Investment; network charges; Planning; prosumer; Reactive power; Reliability; Substations; virtual peer-to-peer transaction
• ISSN: 0885-8950; 1558-0679
• DOI: 10.1109/TPWRS.2023.3240830

The deployment of prosumers with distributed energy resources (DERs) has facilitated the prosumer-centric transactive market, giving rise to the consequent necessity for the coordination between prosumers and the distribution networks. This paper proposes an incentive-based expansion planning method considering virtual peer-to-peer (P2P) transaction among prosumers, which is characterized as a tri-level planning-operation-transaction framework. Each prosumer optimizes its internal response of DERs and external P2P transaction jointly, formulating virtual P2P transaction. Under such a paradigm, the distribution company (DISCO) identifies the optimal expansion planning in the network assets, while the independent distribution system operator (IDSO) is responsible for the optimal operation of the expanded distribution networks. To derive appropriate incentives for each prosumer, the DISCO and IDSO allocate long-term investment network charges and short-term operation network charges on prosumers, along with the designed financial transmission rights coupling multiple time scales. Through such incentives, self-profit driven virtual transactions can relieve operation problems and postpone expansion planning, acting as a short-term alternative. Moreover, a risk-based approach is proposed for prosumer to flexibly change strategy according to different risk preference. Finally, results from the case study demonstrate the superiority and effectiveness of the proposed method in the collaborative application of virtual transaction in the expansion planning.