Distributed energy resources (DER) provide significant value for renewable energy integration in modern power grids. However, unlocking this value requires complex design and coordination. This paper focuses on the emerging {\em transactive energy systems}, which draw tools and principles from economics to design the coordination strategies for DERs. The concept of transactive energy system broadly captures a huge body of literature, and many of them are closely related but fundamentally different. This gives rise to the following questions: how to formally compare different transactive energy systems and their proposed approaches? How to choose the right transactive energy system to formulate a given problem? What tools are available in the literature for each class of transactive energy systems? In this paper, we answer these questions by synthesizing a unifying framework for a large class of problems studied in the literature. The framework consists of preferences, control decision, information structure and solution concept. These elements are important in identifying and distinguishing various transactive energy systems in the literature. We employ the proposed framework to analyze a few important class of transactive energy systems. Their connections and differences are discussed, and available tools for each class of problems are surveyed.
In a grid constrained transactive distribution system market, distribution locational marginal pricing DLMP is influenced by the distance from the substation to an energy user, thereby causing households that are further away from the substation to be charged more. The Jain index of fairness, which has been recently applied to alleviate this undesirable effect of inefficient energy allocations, is used in this research to quantify fairness. It is shown that the Jain index is strictly quasi-concave. A bilevel distributed mechanism is proposed, where at the lower level, auction mechanisms are in…
Motivated by the benefits of multi-energy integration, this paper establishes a bi-level two-stage framework based on transactive control, in order to achieve optimal energy provision among interconnected multi-energy systems (MESs). At the lower level, each MES autonomously determines the optimal set points of each controllable assets by solving a cost minimization problem, in which rolling horizon optimization is adopted to deal with load and renewable energies' stochastic features. A technique is further implemented for optimization model convexification by relaxing storages' complementarit…
This paper designs a market platform for Peer-to-Peer (P2P) energy trading in Transactive Energy (TE) systems, where prosumers and consumers actively participate in the market as seller or buyer to trade energy. An auction-based approach is used for market clearing in the proposed platform and a review of different types of auction is performed. The appropriate auction approach for market clearing in the proposed platform is designed. The proposed auction mechanism is implemented in three steps namely determination, allocation and payment. This paper identifies important P2P market clearing pe…
Equilibrium models to analyse the impact of different coordination schemes between TSO and DSOs on market power in sequentially-cleared energy and ancillary services markets under load and renewable generation uncertainty
In smart grids, distributed energy resources (DERs) have penetrated residential zones to provide a new form of electricity supply, mainly from renewable energy. Residential households and commercial buildings with DERs have become prosumers in the local grids, since they can sell surplus power to others. Researches have been initiated to integrate and utilize DERs through better control and communication strategies. With the advances in the Internet of Things (IoT) technology, unprecedented coordination among DERs can be achieved to facilitate energy trading and transactive energy management. …
Considering that the existing setup of the European electricity markets promotes the spatial coordination of neighbouring power systems only on the day-ahead market stage, regional system operators have to rely mainly on their internal balancing resources in order to guarantee system security. However, as power systems are forced to operate closer to their technical limits, where flexible generation becomes scarce, the conventional market paradigm may not be able to respond effectively on the wide range of uncertainty. The operational flexibility of the power system depends both on the technic…
In energy systems with high shares of weather-driven renewable power sources, gas-fired power plants can serve as a back-up technology to ensure security of supply and provide short-term flexibility. Therefore, a tighter coordination between electricity and natural gas networks is foreseen. In this work, we examine different levels of coordination in terms of system integration and time coupling of trading floors. We propose an integrated operational model for electricity and natural gas systems under uncertain power supply by applying two-stage stochastic programming. This formulation co-opti…
This paper introduces a differentially private mechanism to protect the information exchanged during the coordination of the sequential market-clearing of electricity and natural gas systems. The coordination between these sequential and interdependent markets represents a classic Stackelberg game and relies on the exchange of sensitive information between the system agents, including the supply and demand bids in each market or the characteristics of the systems. The paper is motivated by the observation that traditional differential privacy mechanisms are unsuitable for the problem of intere…
We discuss how multi-grid computing schemes can be used to design hierarchical coordination architectures for energy systems. These hierarchical architectures can be used to manage multiple temporal and spatial scales and mitigate fundamental limitations of centralized and decentralized architectures. We present the basic elements of a multi-grid scheme, which includes a smoothing operator (a high-resolution decentralized coordination layer that targets phenomena at high frequencies) and a coarsening operator (a low-resolution centralized coordination layer that targets phenomena at low freque…
This paper focuses on the coordination of a population of thermostatically controlled loads (TCLs) with unknown parameters to achieve group objectives. The problem involves designing the device bidding and market clearing strategies to motivate self-interested users to realize efficient energy allocation subject to a peak energy constraint. This coordination problem is formulated as a mechanism design problem, and we propose a mechanism to implement the social choice function in dominant strategy equilibrium. The proposed mechanism consists of a novel bidding and clearing strategy that incorpo…
Market-based coordination of demand side assets has gained great interests in recent years. In spite of its efficiency, there is a risk that the interaction between the dynamic assets through the price signal could result in an unstable closed-loop system. This may cause oscillating power consumption profiles and high volatile energy price. This paper proposes an electricity market model which explicitly considers the heterogeneous dynamic asset models. We show that the market dynamics can be modeled by a discrete nonlinear system, and then derive analytical conditions to guarantee the stabili…
This paper focuses on multi-stage coordination for a population of thermostatically controlled loads (TCL). Each load maximizes the individual utility in response to an energy price, while the coordinator determines the price to maximize the social welfare subject to a peak energy constraint. The coordination problem is formulated as a dynamic Stackelberg game. The Stackelberg solution is derived using an indirect approach: we first obtain an upper bound of the Stackelberg game, then we prove that this upper bound is attainable. Sufficient conditions for the optimal solution are characterized.…
This study presents a vehicle-level distributed coordination strategy to control a mixed traffic stream of connected automated vehicles (CAVs) and connected human-driven vehicles (CHVs) through signalized intersections. We use CAVs as mobile traffic controllers during a newly introduced white phase, during which CAVs will negotiate the right-of-way to lead a group of CHVs while CHVs must follow their immediate front vehicle. The white phase will not be activated under low CAV penetration rates, where vehicles must wait for green signals. We have formulated this problem as a distributed mixed-i…
The participation of renewable, energy storage, and resources with limited fuel inventory in electricity markets has created the need for optimal scheduling and pricing across multiple market intervals for resources with intertemporal constraints. In this paper, a new multi-period market model is proposed to enhance the efficiency of markets with such type of resources. It is also the first market design that links a forward market and a spot market through the coordination of schedule and price under the multi-period paradigm, achieving reliability, economic efficiency and dispatch-following …
This paper deals with the problem of clearing sequential electricity markets under uncertainty. We consider the European approach, where reserves are traded separately from energy to meet exogenous reserve requirements. Recently pro- posed stochastic dispatch models that co-optimize these services provide the most efficient solution in terms of expected operating costs by computing reserve needs endogenously. However, these models are incompatible with existing market designs. This paper proposes a new method to compute reserve requirements that bring the outcome of sequential markets closer t…
With the increased share of Distributed Generation (DG) and Demand Responsive (DR) loads in the power systems, new approaches based on the game theory framework have been proposed to tackle the problem of coordination of Price Responsive Devices (PRD). The PRDs are modeled as self-benefiting players who try to optimize their consumption based on the price. In this paper, for the first time, a new algorithm based on the Dantzig-Wolfe (DW) Decomposition method to solve the coordination problem of self-benefiting PRDs in a distributed fashion has been proposed. By utilizing the distributed nature…
This paper introduces a differentially private (DP) mechanism to protect the information exchanged during the coordination of sequential and interdependent markets. This coordination represents a classic Stackelberg game and relies on the exchange of sensitive information between the system agents. The paper is motivated by the observation that the perturbation introduced by traditional DP mechanisms fundamentally changes the underlying optimization problem and even leads to unsatisfiable instances. To remedy such limitation, the paper introduces the Privacy-Preserving Stackelberg Mechanism (P…
Although the specific structures of electricity markets are diverse around the world, they were all conceived on the premise of predictable, controllable generation with nonnegligible marginal costs. Recent changes, specifically, the increasing renewable integration, have challenged such assumptions. In light of this shift, this thesis intends to devise new frameworks and advance our understanding of the future markets. The first part focuses on mechanism design when the model fully reflects the physics of the grid and the participants. We consider a market that involves continuous goods, gene…
