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In this study, we examined the impacts of peer-to-peer (P2P) electricity trading on the power losses in the network, which is one of the objectives optimized in the centralized approach. For this purpose, we reviewed the conventional loss management schemes and suggested the requirements to be considered in the design of P2P electricity trading. Then, we described a new loss management framework for P2P transactions and introduced the concept of the transaction guide. Based on the proposed framework, we simulated the P2P transactions with and without the transaction guide and examined the variation in the network losses. Three noteworthy remarks are derived from the simulation in this paper. First, the random characteristics of P2P trading itself do not guarantee favorable transaction ordering in terms of network losses, but when the new loss management framework is applied, the network losses can be effectively decreased. Second, through the new loss management framework, loss costs can be fairly allocated to individual prosumers. Third, to invigorate the P2P electricity trading, an incentive program should be considered to alleviate the burden of loss costs of the first trader in the P2P electricity trading.

Analyzing Various Aspects of Network Losses in Peer-to-Peer Electricity Trading