Design of Distributed Trading Mechanism Considering Value Contribution of Market Entities

HOU Guo, ZHANG Yuhan², WANG Jianxue, HE Fangbo², TIAN Zihao

Electric Power Construction ›› 2025, Vol. 46 ›› Issue (12) : 10-19.

PDF(3151 KB)
PDF(3151 KB)
Electric Power Construction ›› 2025, Vol. 46 ›› Issue (12) : 10-19. DOI: 10.12204/j.issn.1000-7229.2025.12.002

Design of Distributed Trading Mechanism Considering Value Contribution of Market Entities

Author information +
History +

Abstract

[Objective] Distributed photovoltaics (PV) has developed rapidly in recent years under the guaranteed purchase policy due to the decline in costs. However,unordered growth has increased distribution network operational pressure and created new issues. Thus,an efficient,enforceable market-oriented mechanism is urgently needed to guide healthy PV industry development,coordinate flexible resources,and promote local consumption of new energy. To reduce operational and management burdens on market organizers and participants,this paper proposes a new event-driven two-stage distributed energy trading mechanism for distribution network markets. [Methods] First,the baseline operation state of the distribution network is determined via day-ahead pre-balancing,and whether to trigger distributed trading is judged based on line congestion,voltage over-limit,etc. Then,distributed trading is conducted on demand,using price signal to mobilize resources in generation,load,and storage links for optimal distribution network operation. To incentivize market entities to support system operation through trading,a value contribution evaluation method is proposed based on the "who serves,who profits" principle. Sensitivity factors measure each entity’s contributions to improving voltage quality and alleviating line congestion. Market entities' contributions can serve as the basis for allocating incentives for delaying distribution network investments,boosting their willingness to participate. [Results] Case analysis using the modified IEEE33-bus system verifies the mechanism’s feasibility and effectiveness: in the pre-balancing stage,midday PV over-generation caused branch reverse power overload,and evening peak load led to low voltage violations. after market activation,all violations were eliminated. PV curtailment decreased by 64%,improving consumption rate. With fewer adjustable resources,system improvements diminished and curtailment increased. [Conclusions] This mechanism addresses the practical issue of distributed PVs failing to perceive market signals,while deferring distribution network investments,enhancing utilization of existing equipment,and providing new ideas for future transmission and distribution pricing.

Key words

market mechanism / distribution network side market / distributed trading / value contribution evaluation / distributed new energy consumption

Cite this article

Download Citations
HOU Guo , ZHANG Yuhan² , WANG Jianxue , et al . Design of Distributed Trading Mechanism Considering Value Contribution of Market Entities[J]. Electric Power Construction. 2025, 46(12): 10-19 https://doi.org/10.12204/j.issn.1000-7229.2025.12.002

References

[1]
梁志峰, 夏俊荣, 孙檬檬, 等. 数据驱动的配电网分布式光伏承载力评估技术研究[J]. 电网技术, 2020, 44(7): 2430-2439.
LIANG Zhifeng, XIA Junrong, SUN Mengmeng, et al. Data driven assessment of distributed photovoltaic hosting capacity in distribution network[J]. Power System Technology, 2020, 44(7): 2430-2439.
[2]
张智刚, 康重庆. 碳中和目标下构建新型电力系统的挑战与展望[J]. 中国电机工程学报, 2022, 42(8): 2806-2819.
ZHANG Zhigang, KANG Chongqing. Challenges and prospects for constructing the new-type power system towards a carbon neutrality future[J]. Proceedings of the CSEE, 2022, 42(8): 2806-2819.
[3]
王鹏, 喻译, 赵艺涵, 等. 基于纳什谈判的光伏产消者与共享储能协同参与市场优化策略[J]. 电网技术, 2025, 49(2): 642-652.
WANG Peng, YU Yi, ZHAO Yihan, et al. Optimization strategy for collaborative market participation of photovoltaic prosumers and shared energy storage based on Nash bargaining[J]. Power System Technology, 2025, 49(2): 642-652.
[4]
STEKLI J, BAI L Q, CALI U, et al. Distributed energy resource participation in electricity markets: a review of approaches, modeling, and enabling information and communication technologies[J]. Energy Strategy Reviews, 2022, 43: 100940.
[5]
黄冬梅, 杨凯, 余京朋, 等. 考虑净负荷均衡的分布式光伏集群电压调控策略研究[J]. 电网技术, 2024, 48(10): 4275-4287.
HUANG Dongmei, YANG Kai, YU Jingpeng, et al. Research on voltage regulation strategy of distributed photovoltaic cluster considering the payload balancing[J]. Power System Technology, 2024, 48(10): 4275-4287.
[6]
刘海丞, 王旭阳, 李红军, 等. 面向分布式光伏消纳的需求侧灵活资源与输配协同规划[J]. 电力建设, 2025, 46(10):58-72.
LIU Haicheng, WANG Xuyang, LI Hongjun, et al. Collaborative planning of demand-side flexible resources and transmission and distribution for distributed photovoltaic consumption[J]. Electric Power Construction, 2025, 46(10):58-72.
[7]
肖云鹏, 王锡凡, 王秀丽, 等. 面向高比例可再生能源的电力市场研究综述[J]. 中国电机工程学报, 2018, 38(3): 663-674.
XIAO Yunpeng, WANG Xifan, WANG Xiuli, et al. Review on electricity market towards high proportion of renewable energy[J]. Proceedings of the CSEE, 2018, 38(3): 663-674.
[8]
HU F S, ZHOU D Q, ZHU Q Y, et al. How dynamic renewable portfolio standards affect trading behavior of power generators?considering green certificate and reward/penalty mechanism[J]. Applied Energy, 2024, 375: 124114.
[9]
BHAVANA G B, ANAND R, RAMPRABHAKAR J, et al. Applications of blockchain technology in peer-to-peer energy markets and green hydrogen supply chains: a topical review[J]. Scientific Reports, 2024, 14(1): 21954.
Countries all over the world are shifting from conventional and fossil fuel-based energy systems to more sustainable energy systems (renewable energy-based systems). To effectively integrate renewable sources of energy, multi-directional power flow and control are required, and to facilitate this multi-directional power flow, peer-to-peer (P2P) trading is employed. For a safe, secure, and reliable P2P trading system, a secure communication gateway and a cryptographically secure data storage mechanism are required. This paper explores the uses of blockchain (BC) in renewable energy (RE) integration into the grid. We shed light on four primary areas: P2P energy trading, the green hydrogen supply chain, demand response (DR) programmes, and the tracking of RE certificates (RECs). In addition, we investigate how BC can address the existing challenges in these domains and overcome these hurdles to realise a decentralised energy ecosystem. The main purpose of this paper is to provide an understanding of how BC technology can act as a catalyst for a multi-directional energy flow, ultimately revolutionising the way energy is generated, managed, and consumed.© 2024. The Author(s).
[10]
VISHWAKARMA A K, PATRO P K, ACQUAYE A, et al. Blockchain-based peer-to-peer renewable energy trading and traceability of transmission and distribution losses[J]. Journal of the Operational Research Society, 2024: 1-23.
[11]
孟仕雨, 孙伟卿, 韩冬, 等. 支持现货市场的分布式电力交易机制设计与实现[J]. 电力系统保护与控制, 2020, 48(7): 151-158.
MENG Shiyu, SUN Weiqing, HAN Dong, et al. Design and implementation of decentralized power transaction mechanism to spot market[J]. Power System Protection and Control, 2020, 48(7): 151-158.
[12]
祁兵, 夏琰, 李彬, 等. 基于区块链激励机制的光伏交易机制设计[J]. 电力系统自动化, 2019, 43(9): 132-139, 153.
QI Bing, XIA Yan, LI Bin, et al. Photovoltaic trading mechanism design based on blockchain-based incentive mechanism[J]. Automation of Electric Power Systems, 2019, 43(9): 132-139, 153.
[13]
冯昌森, 谢方锐, 胡嘉骅, 等. 配电系统中点对点电力交易市场设计与出清方法[J]. 电力系统自动化, 2022, 46(9): 11-20.
FENG Changsen, XIE Fangrui, HU Jiahua, et al. Market design and clearing method for peer-to-peer power trading in distribution system[J]. Automation of Electric Power Systems, 2022, 46(9): 11-20.
[14]
陈启鑫, 王克道, 陈思捷, 等. 面向分布式主体的可交易能源系统: 体系架构、机制设计与关键技术[J]. 电力系统自动化, 2018, 42(3): 1-7, 31.
CHEN Qixin, WANG Kedao, CHEN Sijie, et al. Transactive energy system for distributed agents: architecture, mechanism design and key technologies[J]. Automation of Electric Power Systems, 2018, 42(3): 1-7, 31.
[15]
YANG J J, ZHAO J H, QIU J, et al. A distribution market clearing mechanism for renewable generation units with zero marginal costs[J]. IEEE Transactions on Industrial Informatics, 2019, 15(8): 4775-4787.
[16]
ZADE M, LUMPP S D, TZSCHEUTSCHLER P, et al. Satisfying user preferences in community-based local energy markets: auction-based clearing approaches[J]. Applied Energy, 2022, 306: 118004.
[17]
PAUDEL A, CHAUDHARI K, LONG C, et al. Peer-to-peer energy trading in a prosumer-based community microgrid: a game-theoretic model[J]. IEEE Transactions on Industrial Electronics, 2018, 66(8): 6087-6097.
[18]
SHILTZ D J, CVETKOVIĆ M, ANNASWAMY A M. An integrated dynamic market mechanism for real-time markets and frequency regulation[J]. IEEE Transactions on Sustainable Energy, 2015, 7(2): 875-885.
[19]
BAI L Q, WANG J H, WANG C S, et al. Distribution locational marginal pricing (DLMP) for congestion management and voltage support[J]. IEEE Transactions on Power Systems, 2018, 33(4): 4061-4073.
[20]
KHAJEH H, GAZAFROUDI A S, LAAKSONEN H, et al. Peer-to-peer electricity market based on local supervision[J]. IEEE Access, 2021, 9: 156647-156662.
[21]
FARZIN H, GHORANI R, FOTUHI-FIRUZABAD M, et al. A market mechanism to quantify emergency energy transactions value in a multi-microgrid system[J]. IEEE Transactions on Sustainable Energy, 2019, 10(1): 426-437.
[22]
HU B H, DING S, XU Z Y, et al. Optimization model for distributed energy trading based on a market value allocation mechanism in the electricity spot market[J]. Frontiers in Energy Research, 2024, 12: 1476691.
This study proposes a novel distributed energy trading market model with a value distribution mechanism to optimize the allocation and transactions of distributed energy resources (DERs). The framework incorporates a direct load management approach via an electricity aggregator agent, simplifying market processes and reducing transaction costs. A Nash bargaining model is employed to design a fair and efficient value distribution mechanism, promoting equitable benefit allocation among participants. The model integrates stochastic programming to account for uncertainties in real-time load and DER output, enhancing its robustness and applicability in real-world scenarios. The proposed mechanism quantifies each DER’s contribution using a market value contribution rate, serving as a foundation for the Nash bargaining model. This approach ensures individual rationality for both the aggregator and DERs while maximizing overall system benefits. Case studies validate the model’s effectiveness, demonstrating improvements in resource utilization and fair benefit allocation. This research contributes to the advancement of distributed energy markets, offering valuable insights for designing efficient and equitable market structures, ultimately promoting grid stability, renewable energy adoption, and the development of more sustainable and flexible energy systems.
[23]
SHAN S, YANG S L, BECERRA V, et al. A case study of existing peer-to-peer energy trading platforms: calling for integrated platform features[J]. Sustainability, 2023, 15(23): 16284.
The emergence of distributed energy has led to a change in the role of the consumer in the traditional sense over the past decade. The proliferation of emerging generators and distributors has created opportunities for a more decentralised and open energy market. In particular, the emergence of peer-to-peer (P2P) energy trading models, challenged by the surge in demand for sustainable energy, has eliminated the need for intermediaries in energy transactions between consumers, producers, and sellers. Due to the great promise of sustainable energy, both in terms of its contribution to the environment and production costs, this paper reviews a number of well-known P2P energy trading platforms to understand what makes P2P energy trading platforms more functional. As a result, areas for consideration were identified and grouped into five themes: (1) set-up, (2) market, (3) information, (4) price, and (5) regulation.
[24]
WANG L Z, ZHANG Y, LI Z H, et al. P2P trading mode for real-time coupled electricity and carbon markets based on a new indicator green energy[J]. Energy, 2023, 285: 129179.
[25]
LI Q W, CHEN Z L, MIN J L, et al. Hybrid transaction model for optimizing the distributed power trading market[J]. Humanities and Social Sciences Communications, 2024, 11: 1473.
[26]
ZEDAN M, NOUR M, SHABIB G, et al. Review of peer-to-peer energy trading: advances and challenges[J]. e-Prime-Advances in Electrical Engineering, Electronics and Energy, 2024, 10: 100778.
[27]
国家发展和改革委员会, 国家能源局.关于开展分布式发电市场化交易试点的通知[EB/OL].(2017-11-14)[2025-04-07]. https://www.gov.cn/xinwen/2017-11/14/content_5239535.htm.
[28]
GARCIA T R, MARTINEZ M. Optimal bidding strategy for price maker battery energy storage systems in energy and regulation reserves markets[J]. Electric Power Systems Research, 2025, 242: 111461.
[29]
广东电力交易中心有限责任公司办公室. 关于印发《广东省独立储能参与电能量市场交易细则(试行)》的通知[EB/OL].(2023-09-21)[2025-04-07]. https://www.antgv.com/upload/202403/06/202403061411086404.pdf.
[30]
FARIVAR M, LOW S H. Branch flow model: relaxations and convexification: part I[J]. IEEE Transactions on Power Systems, 2013, 28(3): 2554-2564.
[31]
WANG S X, CHEN S J, GE L J, et al. Distributed generation hosting capacity evaluation for distribution systems considering the robust optimal operation of OLTC and SVC[J]. IEEE Transactions on Sustainable Energy, 2016, 7(3): 1111-1123.
[32]
何松涛, 邵振国, 郑文迪, 等. 计及SVG动态调压策略的配电网双层不确定性无功规划配置[J]. 电网技术, 2023, 47(12): 5158-5170.
HE Songtao, SHAO Zhenguo, ZHENG Wendi, et al. Bi-level uncertain reactive power planning of distribution network considering SVG dynamic voltage regulation strategy[J]. Power System Technology, 2023, 47(12): 5158-5170.
[33]
王成山, 王瑞, 冀浩然, 等. 多电压等级配电系统智能软开关协同配置[J]. 中国电机工程学报, 2024, 44(17): 6831-6844.
WANG Chengshan, WANG Rui, JI Haoran, et al. Coordinated allocation of SOP in multi-voltage distribution network[J]. Proceedings of the CSEE, 2024, 44(17): 6831-6844.

Funding

the National Natural Science Foundation of China(52577137)
PDF(3151 KB)

Accesses

Citation

Detail

Sections
Recommended

/