Abstract
An increasing share of on-site distributed generation systems enabled peer-to-peer (P2P) energy trading in distribution systems, where several entities cooperate to obtain electricity at minimum price and make the generation sector Eco-friendly. In this research avenue, significantly less attention was given to the ancillary services, such as reactive power, trading by prosumers. In this paper, we propose a P2P framework in which prosumers can trade reactive power in addition to the active power. The interactions and decision-making processes are modeled as games, and insights on auction mechanisms and bidding (pricing) strategies are present. The game-theoretic approach with trading the bundled energy trading model provides prosumers with more benefits than centralised entity or active power P2P trading model.