  We present a hierarchical framework aimed at decentralizing the distribution
systems market operations using localized peer-to-peer energy markets.
Hierarchically designed decision-making algorithm approaches the power systems
market operations from a bottom-up perspective. The three layers of the
hierarchical framework operate in orchestration to enable prosumers (the
grass-root actors) to maximize their revenues - hence, a prosumer-centric
framework. The design of the framework incorporates existing smart grid
technologies (Virtual Power Plants, Microgrids, Distributed Energy Resources)
and redefine their functional objectives to align them with the
decentralization paradigm focused on empowering bottom-up grid operations
approach. On one hand, the framework is enabling prosumers with simultaneous
access to the buy-sell choices that help them maximize their cost savings while
ensuring their consumption patterns and preferences are not being tradeoff as a
result of top-down operational decisions. On the other hand, it is designed to
operate in harmony with the existing top-down grid operations mechanisms -
thereby reducing the potential friction in its adaptation. This marriage of the
top-down and bottom-up operational approaches is facilitated through meticulous
orchestration of operational timescales. Framework's novel design also
incorporates scalability and interoperability considerations, thereby tackling
the challenge of decentralization holistically.
