A two-tier distributed market clearing scheme for peer-to-peer energy sharing in smart grid

This article presents a novel two-tier peer-to-peer (P2P) market paradigm for energy sharing between multiregional proactive prosumers (producer+consumer) in transactive energy systems. In the proposed approach, interactions between prosumers can be achieved in inter-area markets as well as intra-area markets. A dual decomposition based and a consensus-based distributed market-clearing approaches are designed for the proposed double-layered hierarchical intra- and inter-area markets. The proposed approach preserves prosumers' privacy by sharing only partial information with the fellow prosumers while settling the trade. Compared to the conventional P2P approaches, the proposed two-tier market-clearing scheme allows more prosumer participation in energy trading and significantly enhances their economic benefits in certain situations. The effectiveness of the proposed approach is validated through software simulations.