Peer-To-Peer Transaction Model Among Prosumers Considering Franchise Rights of Distribution Companies

In developing a peer-to-peer (P2P) electricity trading mechanism for the distribution system level, it is necessary to consider the franchise rights owned by the concerned distribution company for designing an appropriate network charging model, so as to effectively compensate the distribution system investment and operating costs. Given this background, this paper proposes a prosumer P2P transaction model that takes into account the distribution company franchise and distribution network operation constraints. First, based on the leader–follower interaction relationship between the distribution company and prosumers, a two-layer game model of determining network tariffs based on electrical distance is established. Then, based on the obtained network tariffs, the Alternating Direction Method of Multipliers (ADMM) is used to determine the P2P real-time transaction power and price of the prosumers with the data privacy protected. Finally, the IEEE 33-node distribution system is employed to demonstrate the proposed method, and it is found by simulation results that interests of all prosumers can be fairly and reasonably protected, on the basis of ensuring the secure operation of the distribution network, and the distribution company can be reasonably compensated for the resulting loss of revenue due to giving up some franchise rights.