Peer-to-peer market with network constraints, user preferences and network charges

•The peer-to-peer market with network constraints and user preferences was proposed.•We developed a distributed procedure and demonstrated the applicability of algorithm.•Algorithm avoids intermediate power flow calculations intrinsic to correction methods. With an increase of distributed generation growing attention is paid to the possibilities of its utilization in the network. The peer-to-peer market represents one of the possible ways to address this question. Largely driven by distributed ledger technologies, the peer-to-peer market architectures ignored network constraints for a long time, paying more attention to the organization of the financial transactions. In this paper we propose a peer-to-peer market design, incorporating network constraints, user preferences, and trade-independent network fees. In this way, we ensure a meeting of three requirements critical to the practical implementation of the peer-to-peer market as secure operation, consumer-centric nature of the market, and the provision of benefits for the grid. We develop a distributed procedure and demonstrate the applicability of the proposed algorithm using the IEEE 39-bus power system, and compare it with the correction-based algorithm.