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A Bilevel Transactive Energy Framework for Peer-to-Peer Solar Trading, EV Charging Flexibility, and Distribution-Network Congestion Management

Original Research | Open access | Published: 20 March 2026
Volume 5, article number 30, (2026) Cite this article
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  1. Department of Electrical Power Systems, Faculty of Engineering, University of Ghana, Accra, Ghana
  2. Department of Energy Optimization and Analytics, Faculty of Engineering, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana
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Abstract

Peer-to-peer solar trading can empower prosumers but poses congestion risks for distribution networks. A bilevel framework that separates market functions from network oversight can enable secure, efficient transactive energy. This article proposes a conceptual bilevel transactive energy framework that coordinates P2P solar trading, EV charging flexibility, and active congestion management. The framework is intended as an architectural contribution rather than a mathematical optimization model. The framework is designed conceptually, with an upper market layer and a lower network operation layer. Information flows, decision logics, and validation pathways are described without mathematical formulation. The framework defines clear roles for market participants and the DSO, integrates EV flexibility as a congestion-mitigation resource, and includes a feedback mechanism from network to market. Five tables summarize the architecture, component functions, and validation plan. The proposed conceptual architecture can guide future software implementations, regulatory sandbox designs, and field pilots. It bridges the gap between market innovation and grid reliability.

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Introduction

Peer-to-peer solar trading would allow households, commercial prosumers, and community microgrids to exchange locally generated electricity through decentralized or semi-decentralized market arrangements. Early P2P trading studies show that local energy exchange can improve prosumer participation and create new value streams for distributed solar resources [1]. At the same time, community-level energy trading must be coordinated carefully because individual transactions can influence feeder loading, voltage behavior, and operational security [2]. This article therefore frames P2P trading not only as a market design problem but also as a distribution-network coordination problem.

The main tension arises because a market-cleared trade may be economically attractive while still being physically difficult for the grid to accommodate. Game-theoretic and auction-based P2P mechanisms have demonstrated how prosumers can negotiate prices and quantities [3], while comparative auction studies show that market rules strongly influence participant behavior [4]. However, these market mechanisms require an architectural interface with network operation so that trading outcomes remain compatible with distribution constraints. A bilevel conceptual framework would help separate commercial coordination from technical feasibility checking without merging all decisions into a single opaque process.

The proposed framework is inspired by bilevel and transactive energy studies in which a higher coordination layer interacts with a lower operational layer. Fernandez et al. [2] show how community energy management can be structured through bilevel coordination, while Singh et al. [5] extend this logic toward stochastic P2P market design. More recent work on renewable microgrids connected to distribution networks also motivates the need for market-network coordination [6]. Building on these ideas, this article proposes a prose-based architecture for coordinating solar trades, EV flexibility bids, and congestion feedback.

The contribution of this conceptual article is to describe the components, roles, information exchanges, and decision-making sequence of a bilevel transactive energy framework. Unlike studies that present formal scheduling models or numerical simulations, the present article deliberately avoids equations, algorithms in mathematical notation, and quantitative results. It focuses on how an upper-level market layer would exchange candidate trading schedules with a lower-level network layer, following the broader direction of network-aware P2P scheduling [7]. The result is an architectural framework that could support future implementation, simulation, and field validation.

P2P Trading Problem

The promise and risks of peer-to-peer trading

P2P trading promises to transform passive consumers into active market participants by allowing prosumers to sell local solar surplus directly to neighbors. In a community microgrid, this kind of exchange can improve local utilization of renewable generation and strengthen participant engagement [1]. Game-theoretic studies also indicate that prosumer incentives can be aligned through carefully designed local trading rules [3]. Yet these same trades may create operational risks when many prosumers export or import simultaneously without awareness of feeder-level constraints.

The congestion blind spot

The congestion blind spot appears when market participants focus on bilateral economic preferences while overlooking the shared physical limits of the distribution grid. Tarashandeh and Karimi [8] emphasize that P2P energy trading must preserve the independent nature of agents while still respecting distribution-network constraints. Personalized P2P trading designs also show that user preferences and AC network constraints can interact in complex ways [9]. Therefore, a conceptual framework must make network feasibility visible to the market without eliminating participant autonomy.

The need for a bilevel approach

A bilevel approach would be structured as two interacting layers, with the upper level responsible for market coordination and the lower level responsible for network oversight. This separation is consistent with bilevel stochastic market design [5] and with renewable microgrid studies that place P2P trading within distribution-grid operating conditions [6]. The upper layer would match solar offers, demand bids, and EV flexibility bids, while the lower layer would review the resulting schedule for congestion risk. If the lower layer identifies a technical concern, it would send feedback to the market so that the trade pattern could be adjusted conceptually before implementation.

System/Market Description

Actors and their assets

The proposed system would include solar prosumers, conventional consumers, EV owners, aggregators, community market operators, and the distribution system operator. Prosumers would provide solar surplus offers, consumers would submit demand preferences, and EV owners would contribute flexible charging or discharging availability where technically and contractually appropriate. Frameworks for prosumer participation in P2P trading and flexibility markets show that these roles can coexist in a layered market setting [10]. The DSO would not act as a commercial counterparty but would remain responsible for maintaining secure feeder operation.

The physical distribution network

The physical network would be represented conceptually as a low- or medium-voltage distribution grid with feeders, transformers, connection points, solar installations, EV chargers, and controllable demand resources. Distribution-aware P2P studies indicate that local trades can influence voltage profiles and line loading, especially when solar exports are concentrated in specific areas [7]. Network congestion management research further suggests that time sequencing matters because trades accepted in one interval can affect the feasibility of later intervals [11]. In this framework, the grid layer is responsible for translating physical limits into feedback that the market can understand.

P2P market structure

The P2P market would be structured as a coordination environment in which participants submit offers, bids, preferences, and flexibility options. Decentralized energy trading frameworks for retailers and prosumers show that market design can accommodate different degrees of central coordination [12]. Shared storage studies also demonstrate that market structures may include intermediary community resources that support balancing among households [13]. In the proposed framework, the market is not defined by a single pricing formula but by its functional responsibility to match local supply, demand, and flexibility while remaining responsive to network feedback.

EV charging infrastructure and flexibility potential

EV charging infrastructure would be treated as both a source of additional demand and a flexible asset that can help reshape local load patterns. Transactive EV charging studies show that charging schedules can be coordinated through market-based signals [14]. Reserve-management work further illustrates that EV aggregators can represent flexible charging resources in structured decision processes [15]. In the proposed architecture, EV flexibility would enter the upper-level market as a bid or service offer and would be reviewed by the lower-level network layer for its ability to support congestion relief.

Information and communication assumptions

The framework assumes that participants and aggregators can exchange standardized information with the market layer, including availability, preferences, asset status, and accepted transactions. Fully decentralized energy sharing studies for smart buildings and aggregated EVs show that local battery systems and EV fleets can exchange operational information without requiring complete central control [16]. The framework also assumes that the DSO can communicate operating envelopes, congestion warnings, or revised network limits to the market layer. These assumptions are summarized in Table 1, which identifies the main components, participants, assets, and conceptual operating conditions.

Table 1. Roles, assets, information exchange, and operational assumptions of participants in the peer-to-peer local energy trading framework

Component or participant

Primary role in the framework

Physical or digital asset involved

Key information exchanged

Conceptual assumption

Solar prosumer

Offers local solar surplus and may buy from peers when needed

Rooftop PV, smart meter, home energy gateway

Solar availability, export offer, demand preference, accepted trade status

Prosumers can express trading preferences while remaining subject to network limits

Conventional consumer

Purchases local energy through the P2P market

Smart meter, controllable load where available

Demand bid, preferred supply source, willingness to shift consumption

Consumers may participate without owning generation assets

EV owner

Provides flexible charging demand and possible discharge availability

EV battery, charger, mobility schedule

Charging need, plug-in window, flexibility bid, minimum mobility requirement

EV flexibility is voluntary and bounded by user mobility needs

EV aggregator

Aggregates distributed EV flexibility for market participation

Aggregation platform, charging network interface

Aggregated flexibility offer, charger status, dispatch confirmation

Aggregation simplifies market interaction for many small EV resources

Community market operator

Coordinates P2P matching and settlement preparation

Digital market platform

Offers, bids, flexibility services, candidate trade schedule

Market operation is distinct from network security assessment

Distribution system operator

Monitors network feasibility and communicates constraints

Feeder monitoring system, network model, operational platform

Congestion warning, operating envelope, technical feedback

The DSO safeguards the grid without directly selecting commercial trades

Shared storage or nanogrid resource

Supports balancing, flexibility, and local service provision

Battery storage, nanogrid controller

State availability, charge or discharge service offer, local balancing signal

Community resources can complement bilateral trades

Communication infrastructure

Enables market-network coordination

Metering, secure data exchange, platform interfaces

Participant data, market outcomes, network feedback, settlement records

Timely and interoperable communication is necessary for coordination

Upper-Level Market Architecture

Market clearing function

The upper-level market layer would be responsible for collecting participant offers, demand bids, and flexibility bids before forming a candidate set of local transactions. Bilevel community energy management research positions the upper layer as the coordination point where trading preferences are organized before network feasibility is evaluated [2]. The market layer would not guarantee physical deliverability by itself; rather, it would prepare a proposed trading schedule for subsequent review. In this sense, market clearing is treated as an architectural function rather than as a mathematical procedure.

Matching solar surplus and demand

Solar surplus matching would connect prosumers with buyers whose demand can be served locally under the rules of the community market. Auction-based P2P studies show that bidding strategies and market mechanisms can influence which buyers and sellers are matched [4]. The framework would therefore allow the market layer to consider price preference, local origin preference, and timing preference when forming candidate matches. These candidate matches would remain provisional until the lower-level network layer verifies that the associated power flows are acceptable.

EV flexibility bid integration

EV flexibility bids would be integrated into the market as adjustable charging demand, deferred charging, charging acceleration, or potentially discharge support where permitted. Network-aware coordination of aggregated EVs shows that charge-discharge flexibility can be represented as a resource for distribution operation [17]. The market layer would receive EV flexibility offers from individual owners or aggregators and align them with periods when solar surplus or congestion relief value is expected. The key architectural role of the market is to make EV flexibility visible alongside energy offers rather than treating EV demand as fixed.

Price signals and settlement

Price signals would communicate the relative value of solar energy, demand response, and flexibility services within the P2P market. Transactive pricing research shows that Stackelberg-style coordination can be used to align demand response with distribution-system objectives [18]. In the proposed framework, prices would be conceptual coordination signals that guide participant behavior and support settlement after network approval. Settlement records would reflect accepted trades, adjusted flexibility commitments, and any market revisions triggered by network feedback.

Outputs to the lower level

The upper-level market would send candidate schedules, expected injections, expected withdrawals, EV charging adjustments, and flexibility commitments to the lower-level network layer. Multi-market nanogrid studies demonstrate that energy and ancillary service exchanges can be coordinated through structured information flows [19]. Ancillary service bidding research also shows that P2P communities can provide services beyond simple energy exchange when their commitments are clearly communicated [20]. Table 2 summarizes the upper-level market functions, the information they receive, the outputs they produce, and the conceptual decision logic they apply.

Table 2. Upper-level market functions, inputs, outputs, decision logic, and interface with the network (lower-level) layer in the peer-to-peer energy trading framework

Upper-level function

Main inputs

Main outputs

Decision logic in conceptual terms

Interface with lower level

Participant registration

Asset type, location, metering status, market eligibility

Verified participant profile

Confirms who can trade and what resources they can represent

Sends participant-location mapping for network association

Offer and bid collection

Solar offers, demand bids, EV flexibility bids, user preferences

Structured market order set

Organizes commercial intentions before matching

Provides expected injection and withdrawal ranges

Solar-demand matching

Available solar surplus, buyer demand, timing preference

Candidate P2P trade schedule

Prioritizes feasible commercial matches subject to later network review

Sends provisional trade pattern to network layer

EV flexibility coordination

Charging windows, flexibility offers, aggregator bids

Candidate flexibility commitments

Aligns flexible charging with solar availability and congestion needs

Sends expected charging adjustments by location and interval

Price signaling

Market preferences, local scarcity, flexibility value

Indicative market prices and settlement basis

Communicates incentives without overriding network security

Receives constraint feedback that may influence revised prices

Settlement preparation

Accepted trades, revised schedules, flexibility delivery confirmations

Settlement records and participant statements

Records obligations after market-network consistency is reached

Uses network-approved schedules as settlement reference

Feedback interpretation

Congestion warning, operating envelope, network constraint message

Revised market request or trade adjustment

Converts technical feedback into market-facing revision needs

Returns adjusted candidate schedule for further checking

Lower-Level Network Architecture

Network state monitoring

The lower-level network layer would be responsible for observing the operational condition of the distribution grid after receiving candidate market outcomes. Distribution-network studies on P2P trading and scheduling emphasize that technical feasibility depends on the location and timing of prosumer injections and withdrawals [7]. The monitoring function would consider feeder loading, voltage behavior, transformer stress, and the spatial distribution of EV charging demand. Its purpose is to determine whether the candidate market schedule appears compatible with secure operation.

Congestion detection and assessment

Congestion detection would identify whether the candidate set of P2P trades and EV schedules could create thermal overload, voltage deviation, or local bottlenecks. Research on P2P trading under distribution constraints shows that congestion assessment must preserve agent independence while still identifying technically problematic transactions [8]. Voltage-regulation service studies further suggest that prosumers may contribute corrective services when network conditions require support [21]. In the proposed framework, congestion assessment would not rank participants mathematically but would classify the candidate schedule as acceptable, conditionally acceptable, or requiring revision.

Feedback signals to the market

When the network layer detects a potential violation, it would send feedback to the upper-level market in a form that can be used for trade revision. Fairness-regularized DLMP-based transactive mechanisms show that network-derived signals can influence market outcomes while addressing fairness concerns [22]. The feedback could indicate constrained locations, restricted export levels, preferred flexibility activation, or a need to shift EV charging away from a congested interval. This feedback would allow the market layer to revise candidate matches without requiring the DSO to directly negotiate with every participant.

Operating envelopes and dynamic constraints

Operating envelopes would define the acceptable range of injections, withdrawals, or flexibility actions at specific network locations. Transactive energy frameworks that combine home energy management, distributed optimal power flow, and P2P trading motivate the use of grid-aware boundaries for local transactions [23]. Reconfigurable distribution-network research also suggests that network topology and operating conditions can change the feasible space for transactive exchanges [24]. In the proposed architecture, operating envelopes would serve as practical communication objects between the DSO and market rather than as formulas presented to participants.

Coordination with the DSO

The DSO would coordinate with the market platform by providing network status information, validating candidate schedules, and issuing technical feedback when congestion risks emerge. Coupled electricity and carbon trading research indicates that future P2P markets may need to coordinate multiple objectives while remaining embedded in distribution-network operation [25]. Swarm-intelligent Stackelberg P2P trading also highlights the importance of layered interaction between participant decisions and system-level coordination [26]. Table 3 summarizes the lower-level network functions, the inputs they require, the outputs they provide, and the congestion feedback mechanisms that would support market revision.

Table 3. Lower-level network functions, inputs, outputs, congestion feedback mechanisms, and role in supporting secure market operation in the peer-to-peer energy trading framework

Lower-level function

Main inputs from market or grid

Main outputs to market or DSO

Congestion feedback mechanism

Conceptual role in the framework

Network state monitoring

Candidate trades, EV charging schedule, feeder measurements, topology information

Network status description

Identifies areas where the proposed schedule may stress assets

Provides the situational awareness needed for secure trading

Feeder loading review

Expected injections and withdrawals by location

Loading risk indication

Flags lines or transformers that may approach operational limits

Protects thermal security during local trading

Voltage condition review

Solar export locations, demand pattern, flexibility actions

Voltage risk indication

Indicates where export reduction or flexible demand adjustment may help

Supports voltage-compatible market outcomes

Operating envelope generation

Network status, DSO policy, asset limits

Location-specific allowable operating ranges

Communicates acceptable import or export boundaries to the market

Converts technical limits into market-usable guidance

Flexibility request formation

Detected congestion, EV availability, controllable load options

Request for flexibility activation or schedule revision

Suggests where flexibility could relieve congestion

Links network needs to market-based flexibility services

DSO coordination

Monitoring data, candidate schedules, feedback history

Technical approval, warning, or revision request

Confirms whether the revised schedule is acceptable

Maintains accountability for distribution-grid reliability

Feedback logging

Market revisions, network responses, accepted schedules

Audit trail for future validation

Records when and why congestion feedback changed market outcomes

Supports transparency, learning, and regulatory review

EV Flexibility Integration

Types of EV flexibility services

EV flexibility would be integrated as a set of market-facing services that reshape charging demand while respecting mobility needs. Transactive EV charging research shows that charging can be coordinated through market signals rather than treated as an uncontrollable load [14]. Aggregator reserve-management studies further suggest that EV fleets can provide structured flexibility services when user constraints and operational commitments are clearly represented [15]. In the proposed framework, these services would include delayed charging, accelerated charging during solar surplus, reduced charging during congestion, and discharge support where vehicle-to-grid participation is technically and contractually enabled.

Temporal and spatial availability

The value of EV flexibility would depend on both when vehicles are connected and where they are located on the distribution network. Network-aware EV coordination studies emphasize that charge-discharge flexibility must be considered in relation to feeder conditions and local network constraints [17]. Residential flexibility research involving HVACs and EVs also shows that flexible demand resources can interact with distribution-level price and congestion signals [27]. Therefore, the framework would treat EV flexibility as time- and location-sensitive rather than as a uniform resource available everywhere in the system.

Bidding and dispatch in the market

EV flexibility bids would be submitted by individual EV owners or aggregators to the upper-level market layer as voluntary service offers. These bids would communicate the participant’s willingness to shift charging, absorb local solar surplus, reduce demand in constrained areas, or provide controlled discharge where allowed. Frameworks for prosumer participation in P2P trading and flexibility markets indicate that such bids can coexist with energy trades when the market platform distinguishes energy exchange from flexibility provision [10]. The market layer would then include these bids in candidate schedules that are later checked by the lower-level network layer.

Congestion relief contribution

EV flexibility would contribute to congestion relief by changing the timing and location of charging demand in response to network feedback. Cooperative negawatt P2P trading shows that demand reduction and flexible consumption can be treated as valuable resources in low-voltage distribution networks [28]. In the proposed framework, an EV aggregator could increase charging in a solar-rich unconstrained area or reduce charging on a feeder experiencing stress. This contribution would be coordinated through market instructions and network feedback rather than through direct unmanaged intervention.

Prosumer incentives and participation

Prosumer participation would depend on transparent incentives, clear service definitions, and confidence that flexibility commitments will not undermine household needs or mobility requirements. Fair-optimal bilevel transactive energy management suggests that fairness is important when community resources are coordinated for collective benefit [29]. The framework would therefore link EV compensation to accepted flexibility services, verified participation, and the role of the service in supporting congestion management. Table 4 summarizes the EV flexibility services, how they would enter the market, and how each service could support network operation.

Table 4. EV flexibility services, market participation forms, network value contributions, participant conditions, and roles in congestion management within the peer-to-peer energy trading framework

EV flexibility service

Market-facing bid description

Network-facing value

Participant condition

Role in congestion management

Delayed charging

EV owner or aggregator offers to postpone charging within an acceptable window

Reduces demand during constrained periods

Vehicle must still meet required departure energy

Helps relieve evening or feeder-specific demand congestion

Solar-following charging

EV offers to charge when local solar surplus is available

Absorbs excess local generation

Vehicle must be plugged in during solar availability

Reduces reverse power flow and solar export stress

Charging reduction

EV offers temporary reduction from an expected charging level

Lowers load at a specific node or feeder

User accepts reduced charging speed or shifted completion time

Supports congestion relief during local overload risk

Accelerated charging

EV accepts earlier or faster charging when the network can accommodate it

Moves demand away from later constrained intervals

Charger capacity and battery acceptance must permit adjustment

Prevents future congestion by advancing flexible demand

Aggregated flexibility block

Aggregator combines many EV bids into one market service

Provides a more reliable and visible flexibility resource

Aggregator manages individual user preferences internally

Allows the network layer to request location-specific relief

Vehicle-to-grid support

EV offers controlled discharge where enabled

Supplies local demand or supports voltage conditions

User contract, charger capability, and battery policy must allow export

Can reduce imports or support constrained local areas

Emergency flexibility response

EV resource accepts exceptional adjustment during network stress

Provides rapid corrective support

Participation rules must define limits and compensation

Helps the market respond to unexpected congestion feedback

Framework Integration and Workflow

End-to-end process overview

The integrated workflow would begin with participant registration, asset characterization, and the submission of solar offers, demand bids, and EV flexibility bids. Bilevel P2P market studies motivate this sequencing because market coordination and network review require different kinds of information [5]. The upper layer would first construct a candidate market outcome, while the lower layer would then evaluate whether that outcome is compatible with distribution-network operation. If the candidate outcome is acceptable, the framework would proceed toward confirmation and settlement preparation.

Normal operation sequence

During normal operation, the market layer would match local solar surplus with demand and select EV flexibility services that improve market value without triggering network concerns. Studies of P2P trading in microgrids show that local energy exchange can be organized around community-level supply and demand coordination [1]. The network layer would review the candidate schedule and return approval or minor guidance if all relevant operating conditions remain acceptable. The market layer would then confirm accepted trades, communicate participant obligations, and prepare settlement records.

Congestion handling sequence

When congestion is detected, the workflow would shift from normal confirmation to iterative market-network coordination. Distribution-constrained P2P trading research highlights the need to preserve participant independence while still correcting infeasible trade patterns [8]. The lower layer would communicate the constrained location, affected time interval, and preferred corrective direction in market-usable language. The upper layer would then revise solar matches, activate EV flexibility bids, or adjust local demand commitments before sending a revised candidate schedule back for review.

Roles and responsibilities

The market operator would be responsible for participant interaction, trade matching, flexibility procurement, settlement preparation, and communication of revised market outcomes. The DSO would remain responsible for network monitoring, congestion assessment, operating-envelope communication, and technical approval of candidate schedules. Transactive energy system reviews emphasize that home energy management, distributed network operation, and P2P trading must be connected through well-defined coordination roles [23]. In this framework, the DSO guides feasibility without becoming the commercial market maker, while the market operator coordinates trades without overriding grid security.

Scalability and modularity

The framework would be designed modularly so that additional resources, market products, or network services could be added without redesigning the whole architecture. Multi-market nanogrid research shows that energy trading and ancillary service provision can coexist when mechanisms and implementation interfaces are clearly separated [19]. Shared energy storage studies also indicate that new community assets can be embedded into P2P markets as flexible intermediaries [13]. This modularity would allow the architecture to expand from a small neighborhood pilot to a larger distribution-area platform.

Figure 1 illustrates the proposed bilevel transactive energy framework in which an upper peer-to-peer market layer coordinates solar offers, demand bids, and EV flexibility services, while a lower distribution-network layer evaluates feeder feasibility, identifies congestion risk, and returns operating-envelope feedback before trades are confirmed.

Figure 1. Bilevel transactive energy architecture for peer-to-peer solar trading, EV flexibility coordination, and distribution-network congestion management.

Figure 1. Bilevel transactive energy architecture for peer-to-peer solar trading, EV flexibility coordination, and distribution-network congestion management.

Validation Strategy

Simulation and test environment

The framework could be validated through staged simulation environments that combine synthetic prosumer behavior, representative feeder models, solar generation profiles, EV charging patterns, and market-platform logic. Prior work on network-aware prosumer scheduling provides a basis for testing how candidate P2P trades interact with distribution constraints [7]. Studies on congestion management with time-sequenced P2P trading also suggest that validation should examine how trades evolve across consecutive operating intervals [11]. The simulation would not need to prove a specific numerical result at the conceptual stage but would test whether the proposed information flows and feedback loops operate coherently.

Key performance indicators

Validation indicators would be selected to assess market participation, network security, flexibility usefulness, fairness, and implementation practicality. Fairness-regularized transactive mechanisms suggest that equity and participant treatment should be evaluated alongside technical outcomes [22]. Voltage-regulation P2P studies also motivate indicators related to the ability of prosumers and flexible assets to support local network conditions [21]. These indicators would be interpreted qualitatively in early framework testing and could later be formalized in simulation or pilot evaluation.

Roadmap for future empirical testing

Future empirical testing could proceed from software-in-the-loop experiments to laboratory demonstrations, regulatory sandboxes, and eventually field pilots with real prosumers and EV charging assets. Renewable microgrid P2P studies connected to distribution grids show that practical validation requires coordination between market design and grid operation [6]. Coupled electricity-carbon trading research also indicates that future pilots may extend beyond energy exchange to include carbon-aware signals and multi-objective coordination [25]. Table 5 outlines validation stages, test environments, key performance indicators, and expected qualitative outcomes for future work.

Table 5. Validation stages, test environments, performance indicators, examined information, and expected qualitative outcomes for the peer-to-peer energy trading framework development and evaluation

Validation stage

Test environment

Key performance indicators

Information examined

Expected qualitative outcome

Conceptual consistency review

Expert review of architecture and workflow

Completeness of roles, clarity of interfaces, absence of conflicting responsibilities

Participant roles, market-network boundary, feedback sequence

Confirms whether the framework is understandable and internally coherent

Software-in-the-loop simulation

Digital market platform connected to feeder simulation

Market response to network feedback, flexibility activation logic, communication timing

Candidate schedules, operating envelopes, revised trades

Demonstrates whether market and network modules can exchange usable signals

Scenario-based stress testing

Representative feeder with high solar and EV penetration scenarios

Congestion identification, schedule revision effectiveness, participant impact

Solar export patterns, EV charging locations, constrained intervals

Shows whether the framework can handle challenging operating conditions

Laboratory demonstration

Controlled microgrid or hardware-in-the-loop environment

Communication reliability, controller interoperability, data exchange quality

Metering data, market messages, DSO feedback signals

Tests whether software and hardware interfaces can support coordinated operation

Regulatory sandbox

Limited real-world trial with defined market rules

Participant acceptance, settlement transparency, DSO confidence, governance feasibility

Enrollment data, accepted bids, feedback logs, settlement records

Assesses whether the architecture can function under supervised market conditions

Field pilot

Live distribution area with prosumers, EVs, and DSO oversight

Operational practicality, scalability, stakeholder trust, service repeatability

Real participant behavior, feeder conditions, flexibility delivery

Provides practical evidence for refinement and possible wider deployment

Post-pilot refinement

Analysis of pilot records and stakeholder feedback

Lessons learned, rule adjustments, interface improvements, replicability

Technical logs, participant feedback, DSO observations

Converts validation learning into improved framework design

Conclusion

This article has proposed a conceptual bilevel transactive energy framework for coordinating peer-to-peer solar trading, EV charging flexibility, and distribution-network congestion management. The framework separates the market coordination layer from the network operation layer so that commercial exchange and grid security can be addressed through distinct but connected responsibilities. It is designed as an architectural contribution rather than a mathematical model.

The upper-level market layer is responsible for collecting offers, bids, and flexibility services, matching local solar surplus with demand, and preparing settlement-ready market outcomes. The lower-level network layer is responsible for monitoring grid conditions, detecting congestion risks, and communicating operating feedback to the market. Together, these layers create a structured pathway for making P2P trading more compatible with distribution-grid operation.

EV flexibility is positioned as a central bridging resource because it can act as both demand and controllable flexibility. By allowing EV charging adjustments to be bid into the market and reviewed by the network layer, the framework creates a practical mechanism for linking participant incentives with congestion relief. This approach supports a more interactive relationship between prosumer markets, flexible loads, and DSO oversight.

Future work should translate the conceptual architecture into software modules, simulation workflows, pilot-ready market rules, and stakeholder governance arrangements. The framework could also be extended to include shared storage, ancillary services, carbon-aware trading, and more detailed interoperability requirements. Its main value is to provide a clear design language for future research and implementation at the intersection of transactive energy, P2P trading, EV integration, and distribution-network reliability.

Acknowledgements

None

Conflict of interest

None

Financial support

None

Ethics statement

None

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Author information

Kwame Mensah, Kojo Asante & Linda Owusu contributed to this work.

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Department of Electrical Power Systems, Faculty of Engineering, University of Ghana, Accra, Ghana
Kwame Mensah & Kojo Asante

Department of Energy Optimization and Analytics, Faculty of Engineering, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana
Linda Owusu

Corresponding author

Correspondence to Kwame Mensah

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Open Access The author(s) retain copyright. This article is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. It may be shared and adapted for non-commercial purposes with appropriate attribution, an indication of changes, and distribution of adaptations under the same license. Third-party material may be subject to separate terms identified in its credit line. View the license at https://creativecommons.org/licenses/by-nc-sa/4.0/.

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Vancouver
Mensah K, Asante K, Owusu L. A Bilevel Transactive Energy Framework for Peer-to-Peer Solar Trading, EV Charging Flexibility, and Distribution-Network Congestion Management. J Smart Grids Energy Anal Optim. 2026;5:30.
APA
Mensah, K., Asante, K., & Owusu, L. (2026). A Bilevel Transactive Energy Framework for Peer-to-Peer Solar Trading, EV Charging Flexibility, and Distribution-Network Congestion Management. Journal of Smart Grids, Energy Analytics and Optimization, 5, 30.
Received
16 September 2025
Revised
23 October 2025
Accepted
02 December 2025
Published
20 March 2026
Version of record
20 March 2026

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