Market-Based Control of Integrated Electricity-Hydrogen Systems via Peer-to-Peer Co-Trading

Peer-to-peer (P2P) energy trading offers a decentralised framework for integrating distributed renewable resources. When local renewable energy generation exceeds demand, surplus electricity can be converted into hydrogen for long-duration storage, providing flexibility beyond the electricity vector. However, most existing P2P markets are focused only on electricity, do not account for network losses and are not designed to coordinate multi-vector trading with inter-temporal couplings. To address these gaps, we propose a distance-aware periodic double auction (DA-PDA) market-clearing mechanism that extends the conventional PDA by incorporating loss-aware pricing and enabling trades between peers with the lowest loss cost. The DA-PDA provides a distributed, market-based coordination mechanism for joint electricity–hydrogen trading, improving efficiency through dynamic price signals. The framework enhances system-level performance by reducing renewable curtailment, increasing utilisation of surplus electricity and enabling hydrogen-supported flexibility. Using a real-world case study, we demonstrate that sector-coupled P2P markets can improve local social welfare and act as an effective energy-conservation mechanism in highly renewable, electrified systems.