An Integrated Two‐Stage Hybrid P2P‐DR Transactive Energy Trading Platform Using Iterative Distributed‐Mixed Integer Linear Optimisation

ABSTRACT Transactive energy frameworks, such as demand response (DR) and peer‐to‐peer (P2P) trading, can enhance the welfare of electricity market participants by fully utilising distributed energy resources. This research proposes an iterative two‐stage DR‐P2P framework using a combined alternating direction method of multipliers (ADMM) and mixed‐integer linear programming (MILP) approach to capture the inter‐stage dependence of the individual DR and P2P frameworks. MILP solves the DR schedule of the market participants based on the input of the P2P platform, whereas the trading behaviour of the customers is optimised using the ADMM approach during the P2P stage. An iterative two‐stage approach is designed to find the combined optimal solution for both P2P and DR stages. In addition to the DR and P2P constraints, the power transfer distribution factor‐based method is suggested to formulate the trading losses and network utilisation fee models for the combined framework trading over the physical distribution network. Additionally, the voltage variations in the network are determined using the voltage sensitivity coefficients. The combined P2P‐DR platform is tested for IEEE‐13 bus distribution system for different test scenarios. It is shown that the suggested P2P‐DR network increases the savings of the market participants by 7.8% compared to the individual P2P and DR stages. Additionally, using the combined P2P‐DR network, the welfare of the market participants is increased by approximately 14.32%.