A DSO-Driven Privacy-Preserving Mechanism for Managing Power Exchanges in Australian Networks

S.A. Mansouri, A. Ramos, J.P. Chaves, J. García-González, J.A. Aguado

IEEE Transactions on Industrial Informatics Vol. 21, nº. 11, pp. 8673 - 8683

Summary:

This article presents a four-level hierarchical model to incorporate decentralized energy communities (ECs) into local electricity markets. The model utilizes an innovative distribution system operator (DSO)-driven algorithm to maximize grid services from ECs, monetize their energy surplus, and adapt market exchanges to network security constraints. In level 1, EC members determine their internal scheduling and power exchanges. A decentralized peer-to-peer (P2P) structure embedded in level 1 enables power sharing with dynamic pricing and limited data sharing among EC members. Levels 2 and 3 involve the EC operators and the retailer company determining their market strategies. In level 4, a DSO-driven algorithm is deployed to evaluate security constraints and the feasibility of exchanges between market players. Implemented on a modified 594-node distribution network in Victoria, Australia, the model optimally integrates ECs with local electricity markets. By preserving agents’ privacy and keeping exchange details confidential, the proposed model ensures next-day contracts adhere to network security restrictions, maximizes grid services from ECs, and reduces members’ electricity bills by 7.5%.

Spanish layman's summary:

Este artículo propone un modelo de cuatro niveles para integrar comunidades energéticas en los mercados locales mediante un algoritmo operado por el DSO. Permite el intercambio P2P, garantiza la seguridad de la red, protege la privacidad y reduce el coste en un 7,5%, según se demuestra en una red de 594 nodos en Victoria, Australia.

English layman's summary:

This article proposes a four-level model to integrate energy communities into local markets using a DSO-driven algorithm. It enables P2P trading, ensures grid security, protects privacy, and reduces bills by 7.5%, demonstrated on a 594-node network in Victoria, Australia.

Keywords: Decentralized optimization, electric vehicles (EVs), energy community (EC), peer-to-peer (P2P) power sharing, smart grids.

JCR-JIF Impact Factor and WoS quartile: 9,800 - Q1 (2025)

DOI reference: https://doi.org/10.1109/TII.2025.3586048

Published on paper: November 2025.

Published on-line: July 2025.

Citation:
S.A. Mansouri, A. Ramos, J.P. Chaves, J. García-González, J.A. Aguado, "A DSO-Driven Privacy-Preserving Mechanism for Managing Power Exchanges in Australian Networks", IEEE Transactions on Industrial Informatics, Vol. 21, nº. 11, pp. 8673 - 8683, November 2025. [Online: July 2025] doi: 10.1109/TII.2025.3586048