The advancements in Renewable Energy Sources (RES), increasing trends of distributed generation and proliferation of prosumer community requires an affective utilization of energy in Microgrid (MG) paradigm. Peer-to-Peer (P2P) energy trading mechanism provides a platform where prosumers can participate in energy sharing which is beneficial for all users of MG. Meanwhile, due to the high penetration of RES and distributed generations in distribution system used in P2P energy trading concept, the control and operation of existing grid is lacking the required functionalities. In P2P energy trading, power congestion occurs on distribution system which can limit effective utilization of RES. As RES and power demands are increasing, congestion problem also tends to increase. Smart Metering (SM) infrastructure is used to handle Energy Congestion Problem (ECP) by more effective management of prosumer community in P2P energy trading mechanism. SM monitors power transactions, maintains status of the network and obtains power profiles of prosumers. In this paper, Normalized P2P (NP2P) energy trading scheme is proposed with objective to decrease load on main grid and cost minimization for all users. NP2P is centralized contracting scheme treats all users in Microgrid equal for energy flow and cost implementation. Three different cases are considered to validate efficiency of proposed P2P energy trading scheme. In this research work, ECP due to NP2P model is analyzed, modeled as Knapsack Problem (KP) and solved using Greedy and Simulated Annealing (SA) algorithms. In proposed research, Central Energy Management Unit (CEMU) is responsible for implementation of functions for NP2P model and energy congestion control. To improve the reliability of grid, some prosumers with surplus energy should be disconnected. The results of various considered cases for proposed NP2P scheme and algorithms for ECP are compared to verify effectiveness of the solution.