ADMM-based fully decentralized Peer to Peer energy trading considering a shared CAES in a local community

Peer-to-peer (P2P) energy trading markets have emerged locally as a result of the higher usage of renewable energy sources in low-voltage networks. P2P energy trading systems have been increasingly popular in recent years, allowing consumers in residential and industrial types to trade electricity with each other. P2P energy trading has become feasible due to several developments in communication technology and the increased acceptance of renewable energy sources like solar and wind power. In this market, Consumers have been more interested in sharing their extra energy with others to get access to the new market and increase their profit. There are two approaches to P2P energy trading. The centralized approach involves a third-party entity, typically a network operator, that manages the trading platform. This approach offers a reliable option but may pose certain shortcomings such as limited privacy. In contrast, the decentralized approach empowers consumers to transact their surplus energy directly to one another, without requiring the intervention of a centralized authority. Such an approach endows participants with greater flexibility and preserves their privacy. This paper presents a fully decentralized approach for a local P2P energy trading market using the alternating direction method of multipliers (ADMM) algorithm. This paper also considers a compressed air energy storage (CAES) technology to increase flexibility and reduce peak demand. In the following, Numerical studies are carried out for a local community in a distribution network. Simulation results demonstrate how the P2P markets can facilitate the customers to manage their energy in the local community.