This paper proposes a novel Peer-to-Peer (P2P) joint electricity and carbon (E&C) trading model to co-optimize the energy and carbon emissions permit transactions considering the trading preferences in the distribution network. To realize the secure and low-carbon network operation, a decomposable carbon-aware distribution locational marginal pricing (CDLMP)-based operation service pricing scheme of the distribution system operator (DSO) is proposed to guide the P2P transactions among prosumers. In practice, the coordination between the P2P market and the DSO is cast as a bi-level optimization. In the upper level, the network operation optimization of the DSO is modeled as a carbon-aware optimal power flow (COPF) problem based on a carbon emission flow model to ensure the security of network operation and derive the CDLMP. In the lower level, a decentralized P2P joint E&C trading is modeled to simultaneously clear energy and carbon permit. Later, this paper develops an l (p)-Box ADMM method to relax the binary variables originating from the peer-matching process of the carbon trading. Finally, a novel demurrage protocol is designed to facilitate the convergence of the bi-level interaction with an incentive for trading adjustments. Case studies illustrate the effectiveness of the proposed method in motivating “grid-friendly” and “low-carbon” P2P trading.

As the need for clean energy increases, massive distributed energy resources are deployed, strengthening the interdependence of multi-carrier energy systems. This has raised concerns on the electricity-heat system’s co-operation for lower operation costs, higher energy efficiency, and higher flexibility. This paper discusses the co-operation of integrated electricity–heat system. In the proposed model, network constraints in both systems are considered to guarantee system operations’ security: the branch flow model is utilized to describe the electricity network, while a convexified model considering variable mass flow and temperature dynamics is adopted to describe the heat network. Additionally, novel models for heat pumps and the stratified water tank are proposed to represent the physical system more accurately. Finally, to preserve the information privacy of separate systems, a distributed algorithm is proposed based on the alternating direction method of multipliers (ADMM). Numerical studies show that the co-operation could provide a more economical and reliable solution than the decoupled operation of the heat network and electricity network. Moreover, the ADMM-based algorithm could derive solutions very close to the optimum provided by centralized optimization.