Power Hardware-In-the-Loop Testing of a Peer-to-Peer Energy Trading Framework

Abstract: This paper demonstrates the value of power hardware-in-the-loop (PHIL) testing for the study of peer-to-peer (P2P) energy trading. P2P has emerged as a promising candidate for coordinating large numbers of distributed energy resources (DER) that pose a risk to network operations if left unmanaged. The existing literature has so far relied on pure software simulations to study DER and distribution networks within this context. This requires the development of simplified models for complex components due to the computational limitations involved. Issues that arise through the operation of physical hardware in real-world applications are therefore neglected. We present PHIL testing as a solution to this problem by exhibiting its ability to capture the complex behaviors of physical DER devices. A high-fidelity PHIL test environment is introduced that combines key hardware elements with a simulated network model to study a P2P trading scenario. The initial findings reveal several underlying challenges of coordinating DER that are not typically discussed in prior works.