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Resilient peer-to-peer energy trading: addressing price uncertainty and communication delays in decentralized markets

  • Mostafa Yaghoubi

Student thesis: Master's thesisMaster in Engineering: Engineering

Abstract

This paper presents a robust, fully decentralized peer-to-peer (P2P) energy trading framework tailored for smart grids, that address critical challenges such as wholesale market price uncertainty and communication network delays. The framework enables prosumers, equipped with energy storage systems and participating in demand response (DR) programs, to engage in dynamic energy transactions with local participants and retailers. By employing a robust optimization approach, the model effectively mitigates risks associated with retail price volatility, ensuring reliable decision-making under uncertain market conditions. Communication delays are explicitly incorporated to assess their impact on market convergence, decision efficiency, and operational stability. By using the Fast-Alternating Direction Method of Multipliers (FADMM) algorithm, the proposed framework achieves decentralized market clearing without the need for a central supervisory node, thereby preserving privacy and ensuring scalability. Flexible interaction mechanisms between buyers, sellers, and retailers enhance social welfare through optimized local and retail market participation. Simulation results validate the framework’s efficacy under diverse scenarios, including deterministic and stochastic pricing conditions, with and without communication delays. The findings demonstrate the robustness of the proposed model in maximizing social welfare, reducing grid dependency, and addressing real-world operational challenges in decentralized energy markets, contributing to the advancement of scalable and sustainable P2P energy trading systems.
Date17 Mar 2025
Original languageAmerican English
Awarding Institution
  • École de technologie supérieure
SupervisorZbigniew Dziong (Supervisor)

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