Journal of Energy Management and Technology

Journal of Energy Management and Technology

A Framework Based on Determining Feasible Transaction Regions (FTRs) for P2P Trading of Energy Communities in an Active Distribution Network Using ADMM Method

Document Type : Original Article

Authors
Mohammad Sedaghat 1
Esmaeel Rokrok 2
Meysam Doostizadeh 2
1 Department of power electrical engineering, Lorestan university, Khorramabad, Iran
2 Department of power electrical engineering, Lorestan university, Khorramabad, Iran.
10.22109/jemt.2026.539980.1568
Abstract
The growth of distributed generation resources, local electricity markets, and peer-to-peer energy exchanges has introduced challenges, notably balancing network technical constraints with maximum utilization of distributed generation units. Static operation envelopes (SOEs) and Dynamic operation envelopes (DOEs) have emerged as solutions, statically and dynamically setting network constraints over time, respectively. However, these envelopes often calculated by distribution system operators (DSOs) and imposed on users, may overlook participants' preferences, reducing profits and incentives to engage in local markets. Addressing this, the paper proposes a framework for determining feasible transaction regions (FTRs), established through agreements between energy communities (ECs) and DSOs. These FTRs represent optimal operating envelopes that consider uncertainties in ECs and DSO constraints. The framework models EC uncertainties using the chance constraint method and solves the optimization problem with the alternating direction method of multipliers (ADMM) on a standard IEEE 69-bus network using GAMS software. Results highlight the method's efficiency and accuracy compared to DOE and SOE approaches, effectively defining safe regions for peer-to-peer energy trading in distribution networks. This novel approach optimizes energy exchanges while respecting technical constraints and participant preferences. Also, this paper, by providing different confidence levels during simulations, verifies the proper efficiency of the proposed method in operating the uncertainty of distributed generations. The simulation results show cost reduction of ECs and loss reduction in the distribution network along with increment in active and reactive power exchanges compared to DOE and SOE methods.
Keywords
Energy communities
dynamic operation envelopes
peer-to-peer energy trading
feasible transaction region
and active distribution network
Subjects
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Journal of Energy Management and Technology
Volume 10, Issue 1
Winter 2026
Pages 61-75

  • Receive Date 11 August 2025
  • Revise Date 01 February 2026
  • Accept Date 02 May 2026