English

A Non-Iterative Algorithm for Clearing Two-Layer Energy-Sharing Markets with Voltage Constraints

Optimization and Control 2026-05-25 v1 Systems and Control Systems and Control

Abstract

Real-time hierarchical energy-sharing markets are promising to coordinate large numbers of prosumers. Still, most existing clearing methods rely on linearized or DC power-flow models and do not explicitly handle reactive power or voltage-security constraints. With AC network constraints, the problem becomes a large-scale bilevel Mathematical Program with Equilibrium Constraints (MPEC) that is difficult to solve in real time. This paper develops a non-iterative clearing algorithm for two-layer energy-sharing markets with voltage constraints. We first derive an efficient best-response function for each lower-layer energy-sharing market and reduce the equilibrium search to one dimension by exploiting the pricing-coupling structure. We then embed this function into the upper-layer network-constrained problem and reformulate the bilevel MPEC as a single-level mixed-integer second-order cone program (MISOCP), which is computationally tractable. Case studies on the IEEE 123-bus system with 12,300 prosumers show that the proposed method preserves nodal voltages within prescribed limits and delivers solutions with maximum errors below 0.01\% in 0.829 s.

Keywords

Cite

@article{arxiv.2605.23671,
  title  = {A Non-Iterative Algorithm for Clearing Two-Layer Energy-Sharing Markets with Voltage Constraints},
  author = {Tonghua Liu and Yifan Su and Zhaojian Wang and Feng Liu},
  journal= {arXiv preprint arXiv:2605.23671},
  year   = {2026}
}

Comments

10 pages, 6 figures; submitted to IEEE Transactions on Smart Grid