A Differentiation-Aware Strategy for Voltage-Constrained Energy Trading in Active Distribution Networks

Free trading of distributed energy resources (DERs) is an effective way to enhance local renewable consumption and user-side economic efficiency. Yet unrestricted sharing may threaten operational security. To address this, this paper proposes a voltage-constrained, differentiated resource-sharing framework for active distribution networks (ADNs). The framework maximizes users’ economic benefits and renewable absorption while keeping system voltages within safe limits. A local energy market with prosumers and the distribution network operator (DNO) is established. Prosumers optimize trading decisions considering transaction costs, wheeling charges, and operational costs. Based on this, a generalized Nash bargaining model is developed with two sub-problems: cost optimization under voltage constraints and payment negotiation. The DNO verifies prosumer decisions to ensure system constraints are satisfied. This paper quantifies prosumer heterogeneity by integrating market participation and voltage regulation contributions, and proposes a differentiated bargaining model to improve fairness and efficiency in DER trading. Finally, an ADMM-based distributed algorithm achieves market clearing under AC power flow constraints. Case studies on modified IEEE 33-bus and 123-bus systems validate the method’s effectiveness, the allocation of benefits between producers and consumers is more equitable, and the costs for highly engaged producers and consumers can be reduced by 46.75%.

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Publication Details

Journal
Technologies
Published
2025-11-28
DOI
https://doi.org/10.3390/technologies13120557
Primary Topic
Smart Grid Energy Management
Type
article
Field-Weighted Citation Impact
0.00

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article

A Differentiation-Aware Strategy for Voltage-Constrained Energy Trading in Active Distribution Networks

Licheng Sun, Min Pan, Yifan Liu, Cheng Bi Zhao et al.
Technologies
Smart Grid Energy Management
article

A Differentiation-Aware Strategy for Voltage-Constrained Energy Trading in Active Distribution Networks

Licheng Sun, Min Pan, Yifan Liu, Cheng Bi Zhao, Ming Wang, Wei Lou, Junran Zhouyang
article en

Abstract

Free trading of distributed energy resources (DERs) is an effective way to enhance local renewable consumption and user-side economic efficiency. Yet unrestricted sharing may threaten operational security. To address this, this paper proposes a voltage-constrained, differentiated resource-sharing framework for active distribution networks (ADNs). The framework maximizes users’ economic benefits and renewable absorption while keeping system voltages within safe limits. A local energy market with prosumers and the distribution network operator (DNO) is established. Prosumers optimize trading decisions considering transaction costs, wheeling charges, and operational costs. Based on this, a generalized Nash bargaining model is developed with two sub-problems: cost optimization under voltage constraints and payment negotiation. The DNO verifies prosumer decisions to ensure system constraints are satisfied. This paper quantifies prosumer heterogeneity by integrating market participation and voltage regulation contributions, and proposes a differentiated bargaining model to improve fairness and efficiency in DER trading. Finally, an ADMM-based distributed algorithm achieves market clearing under AC power flow constraints. Case studies on modified IEEE 33-bus and 123-bus systems validate the method’s effectiveness, the allocation of benefits between producers and consumers is more equitable, and the costs for highly engaged producers and consumers can be reduced by 46.75%.

TechnologiesVol. 13(12)
Hefei University of Technology (CN)
Science and Technology Project of State Grid
Openalex Percentile: Top 61%
Smart Grid Energy Management
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A Differentiation-Aware Strategy for Voltage-Constrained Energy Trading in Active Distribution Networks — Licheng Sun, Min Pan, et al. · Technologies (2025) | TGRS Research Map | TGRS