A hierarchical game framework for peer-to-peer energy trading in distribution networks considering the participation of prosumers

The advent of the peer-to-peer energy trading has dramatically altered the conventional dynamics of distribution networks. Prosumers, managing independently and engaging in peer-to-peer (P2P) energy exchanges, introduce critical challenges for the economical and secure operations of these networks. This research presents a hierarchical framework designed to manage P2P energy interactions between prosumers and to facilitate flexible operation within the distribution network at the substation level. The upper layer of the model aims to stabilize market prices within the distribution framework, while the lower layer establishes a P2P energy trading platform that upholds fairness and safeguards the privacy of the prosumer participants. A fixed-point mapping approach is utilized to assess the interactions between market stabilization efforts and prosumer bidding strategies within this framework. Through simulations, we illustrate the logical soundness and effectiveness of our proposed model and approach. The findings indicate that the proposed model and the energy trading framework could substantially improve the overall welfare of all stakeholders involved.