I am trying to understand FEP in the context of a water dimer. Let's say I want to calculate $\Delta A$, the free energy change for the following reaction:
$$\ce{H_2O +H_2O\rightarrow H_2O-H_2O},\tag{1}$$
in which the right hand side denotes a dimerized water molecule. Let's call the left side state 1 and right side state 2. In the left side there is no H-bond.
Now as per Zwanzig, the FEP equation is:
$$ \Delta A=kT\ln \left\langle e^{(-[E_2 - E_1]/kT)}\right\rangle_1,\tag{2} $$
in which $E_2$ is the energy of a water dimer, $E_1$ is the energy of two non-interacting molecules, and the sampling is done in two non-interacting water molecule states.
Now the total number of particles is 6 (four H atoms, and 2 O atoms). Now when I am sampling at state 1, the conformational coordinate of say the oxygen atom (in the second water molecule), is also the coordinate of the second O atom in the dimer, because I am passing the same coordinate space to the dimer as well. Here is where I am struggling to understand: The coordinates of 6 atoms are the same in both state 1 and state 2, but the only difference is the H-bond which will come into effect in the dimer. So in the $\lambda$ context, lets say for simplicity we have one H-bond between H atom #3 (of the first water molecule) and O atom #5 (of the second water molecule). Then we can define the Lennard-Jones potential between atom #3 and atom #5 as,
$$\sigma_ {(3,5)}(\lambda)=\lambda \sigma_ {(3,5)},\tag{3}$$ in which $\lambda=0$ denotes state 1, and $\lambda=1$ denotes state 2. This way we will have full blown Lennard-Jones in state 2. Is this how it is modeled in this particular case?
My second question is on electrostatic interaction, say at particular lambda (say $\lambda =0$), we have to run MD on state 1, which at this value of lambda represents non-interacting state. But when we run two such water molecules in MD, the electrostatic interaction will take place nevertheless between these water molecules. I mean I can parametrize away the Lennard-Jones, but it seems I can't kill the inter-molecular electrostatic interaction, as I don't seem to have parameter which I can set at zero at $\lambda=0$. Hence it seems to me I can't satisfy the non-interacting criteria in state 1. Where am I going wrong on electrostatic part?