  This paper studies the applicability of peer-to-peer (P2P) energy trading in
a grid-tied network. The main objectives are to understand the impact of the
financial P2P energy trading on the network operation, and thus demonstrate the
importance of taking various issues related to power network into account while
designing a practical P2P trading scheme. To do so, a simple mechanism is
developed for energy trading among prosumers without considering any network
constraints, as done by many existing studies. Once the trading parameters,
such as the energy traded by each prosumer in the P2P market and the price per
unit of energy are determined, the developed scheme is tested on a low-voltage
(LV) network model to check its feasibility of deployment in a real P2P
network. It is shown that although the considered trading scheme is
economically beneficial to the participating prosumers compared to the existing
incentive mechanisms (such as feed-in-tariff), it could be unfit for real
deployment due to violating bus voltage limits during multiple P2P trading
executed simultaneously. Further, the grid operator may experience financial
losses for compensating the losses during P2P transactions.
