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Peer-to-peer (P2P) electricity markets enable prosumers to minimize theircosts, which has been extensively studied in recent research. However, thereare several challenges with P2P trading when physical network constraints arealso included. Moreover, most studies use fixed prices for grid power priceswithout considering dynamic grid pricing, and equity for all participants. Thispolicy may negatively affect the long-term development of the market ifprosumers with low demand are not treated fairly. An initial step towardsaddressing these problems is the design of a new decentralized P2P electricitymarket with two dynamic grid pricing schemes that are determined by consumerdemand. Futhermore, we consider a decentralized system with physicalconstraints for optimizing power flow in networks without compromising privacy.We propose a dynamic congestion price to effectively address congestion andthen prove the convergence and global optimality of the proposed method. Ourexperiments show that P2P energy trade decreases generation cost of main gridby 56.9% compared with previous works. Consumers reduce grid trading by 57.3%while the social welfare of consumers is barely affected by the increase ofgrid price.

Fully Decentralized Peer-to-Peer Community Grid with Dynamic and Congestion Pricing